Nio shares surge on October delivery figures

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William Li Bin, founder, chairman and CEO of Nio (Image credit: Nio)
William Li Bin, founder, chairman and CEO of Nio (Image credit: Nio)

Shares for electric vehicle (EV) maker Nio surged 12.5% after investors welcomed solid delivery figures for October, closing at $1.71 on Monday.

Why it matters: Despite a modest increase in vehicle sales after bottoming in July, Nio has a long way to go to prove it is on the road to profitability following four years of losses.

  • Nio did not disclose any progress in its most recent new funding deal after failing to lure the municipal government of eastern Huzhou city, nor a replacement for its former chief financial officer Louis T. Hsieh.

Details: Nio on Monday reported a unit delivery increase of more than a quarter over September figures, totaling 2,526 vehicles in October including 2,220 of the company’s five-seater electric crossover model, the ES6.

  • The company has seen a steady rise in deliveries for the three months from August to October, jumping 45.4% to 6,488 units compared with the same period a year earlier.
  • Nio shares soared 12.5% to close at $1.71 on Monday, and climbed 4.1% in after-hours trading.
  • It has delivered 14,867 electric cars for the ten-month period ended Oct. 31, still significantly below the target of 40,000 units set earlier this year.

“We appreciate the support from our users and believe in the power of word of mouth as our vehicles and services continuously evolve and optimize. Meanwhile, we will continue rolling out NIO Spaces and expanding our sales network to support our future growth.” 

⁠—William Li Bin, Nio’s founder, chairman, and CEO

Context: Sentiment toward the embattled EV maker seem to be shifting in its home country after a Chinese media outlet, Cool Labs, posted an article featuring a profile of Li’s career trajectory.

  • The post, which has been viewed more than 100,000 times on Chinese instant messaging app WeChat with numerous positive comments from netizens, depicted Li as a determined entrepreneur who went all-in to make Nio the only privately run premium car brand in China.

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