Nio Deliveries Jump 109% In November, Boosts Production Capacity To Keep Pace With Rising Demand

Nio Inc – ADR NIO reported Tuesday, ahead of the market open, another monthly record deliveries and signaled rising demand for its electric vehicles.

Record Delivery Streak Continues: Nio's November deliveries jumped 109.3% year-over-year to a record monthly number of 5,291 units. This represented a 4.7% month-over-month increase from the 5,055 vehicles the company delivered in October.

November marked the fourth straight month where the company has churned out a record monthly total.

In its third-quarter earnings release, Nio guided to fourth-quarter deliveries of 16,500 to 17,000 units, up 100.6% to 106.7% year-over-year and 32.5% to 39.3% sequentially.

To hit the high-end of the target, the company has to deliver 6,654 vehicles in December.

The November deliveries comprised 1,387 ES8s, 2,386 ES6s, and 1,518 EC6s — which Nio began delivering in late September. EC6 deliveries totaled 883 in October.

Related Link: BofA's Takeaways On Nio's 2021 Plans

Why It's Important: After a hot streak up until recently, Chinese EV stocks have come under pressure, although they are still trading with strong year-to-date gains. Apart from the opportunity presented by the booming Chinese EV market, fundamentals and execution matter.

If Nio can sustain its post-pandemic resurgence, some of the premium at which the stock trades could be justified.

Regulatory risk has also come into play, with a Chinese media outlet recently reporting that the country's regulators are planning to clamp down on investments by local EV companies.

What's Next: Nio said it is in the process of accelerating production capacity expansion in December to accommodate the increasing order growth.

The next catalytic events for Nio are likely to be its December delivery numbers, which are due in the first week of January,  and the Nio Day, scheduled for Jan. 9.

Price Actio: After closing at an intra-day high of $55.55 last Wednesday, Nio stock has come off the level. In premarket trading Tuesday, the shares were advancing 3.70% to $52.40.

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Related Link: High-Flying Chinese EV Stocks Hit Roadblock Amid Domestic Regulatory Scrutiny