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Tuesday, January 19, 2021 2:33:04 PM
As expected, the fund-raising dip in December was another buying opportunity. The forecasted large growth rate in the Chinese EV market should lead to another big year for Nio.
Big Monthly Delivery Increase
Nio delivered 7,007 units during December for a big step up from the 5,291 in November. The Chinese EV company had generally seen small monthly delivery increases since April as the sector raced ahead.
For December, Nio had a nearly equal delivery of ES8, ES6 and EC6 models. In total, Q4 deliveries were 17,353 EVs while the full-year count was only 43,728 vehicles. The company is already on an annualized rate of 84,000 cars.
In comparison XPeng (XPEV) had 5,700 deliveries while Tesla (TSLA) reached totals of nearly 500,000 units for the year. Nio remains a leader in China, but the company is far behind Tesla as a global EV manufacturer.
The company unveiled a new sedan called the ET7 at the fourth Nio Day on January 9. The EV will cost between $70K and $85K so the company isn’t going to catch up with competitors on volumes with the ET7.
Possibly the biggest news was a 150 kilowatt-hour battery pack with a claimed range of 625 miles. Batter technology will remain a distinguishing factor in EV sales.
Chinese Market Surge
The Chinese EV market is set to surge to 1.8 million vehicles in 2021, up 40% from 1.3 million vehicles last year. Despite the 100% growth rate in 2021, Nio still only has a fraction of the business.
While the company selling shares at only $39 last month now seems ill timed with the stock near $60, Nio is poised with capital to build out manufacturing and further attack a market where the company only has EV market share in the 3% range. The total Chinese vehicle market approaches 3 million units monthly so Nio hardly registers on total sales. Due to this vast opportunity, the company raised another $1.3 billion via convertible debt. In total, Nio has raised over $4 billion in the last month to fund growth.
Analysts have sales nearly doubling to $4.6 billion this year and surging again to $7.5 billion in 2022. The greenfield market opportunity in China appears to easily support Nio reaching these sales targets. However, the stock has a market value of $90 billion, so it will dip on any missteps.
Takeaway
The key investor takeaway is that Nio appears poised to further capture market share in a growing Chinese EV market. The company continues to innovate in battery technology and autonomous driving.
As always, Chinese stocks have additional risks due to regulatory concerns and transparency issues. Those interested in the Nio story and willing to take the risk should use any pain from news of new competitors entering the market as an opportunity to the EV stock.
Recent NIO News
- Cheche Group Announces Partnership with NIO Insurance Broker • PR Newswire (US) • 06/20/2024 11:30:00 AM
- GME Volatile as Roaring Kitty Goes Live Today, Meta Unveils AI for WhatsApp Ads, and More • IH Market News • 06/07/2024 12:09:15 PM
- US Index Futures Mixed; Oil Prices Rise • IH Market News • 06/06/2024 11:29:43 AM
- NIO Inc. Reports Unaudited First Quarter 2024 Financial Results • GlobeNewswire Inc. • 06/06/2024 10:10:50 AM
- Apollo Buys 49% of Intel’s Irish Plant for $11bn, BlackRock and Citadel to Create Texas Exchange, and More News • IH Market News • 06/05/2024 11:41:36 AM
- NIO Inc. Provides May 2024 Delivery Update • GlobeNewswire Inc. • 06/01/2024 09:30:59 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/24/2024 10:14:54 AM
- NIO to Hold Annual General Meeting on June 25, 2024 • GlobeNewswire Inc. • 05/24/2024 09:30:44 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/22/2024 10:06:28 AM
- NIO Inc. to Report Unaudited First Quarter 2024 Financial Results on Thursday, June 6, 2024 • GlobeNewswire Inc. • 05/22/2024 09:30:11 AM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/21/2024 08:28:12 PM
- Form F-3ASR - Automatic shelf registration statement of securities of well-known seasoned issuers • Edgar (US Regulatory) • 05/21/2024 08:02:10 PM
- Chubb Stock Soars 9% with Berkshire Acquisition, AST SpaceMobile jumps 37% on AT&T deal, and More News • IH Market News • 05/16/2024 11:27:07 AM
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- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- NIO Inc. Provides April 2024 Delivery Update • GlobeNewswire Inc. • 05/01/2024 09:30:24 AM
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- NIO Inc. Files Its 2023 Annual Report on Form 20-F • GlobeNewswire Inc. • 04/09/2024 10:11:21 AM
- NIO Inc. Provides March and First Quarter 2024 Delivery Update • GlobeNewswire Inc. • 04/01/2024 09:30:26 AM
- NIO Inc. Prudently Adjusts First Quarter 2024 Delivery Outlook • GlobeNewswire Inc. • 03/27/2024 09:30:20 AM
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- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/05/2024 12:39:45 PM
- U.S. Futures Dip, Crude Oil Fluctuates • IH Market News • 03/05/2024 11:05:54 AM
- NIO Inc. Reports Unaudited Fourth Quarter and Full Year 2023 Financial Results • GlobeNewswire Inc. • 03/05/2024 10:00:21 AM
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