Nio Sets Quarterly Record for Deliveries
It was a great week all around for Chinese EV maker, Nio (NYSE:NIO). The major news was the boost in vehicle deliveries that the company saw in March compared to February. The 9,985 vehicles it delivered represented a 62.8% sequential rise from the previous month, and brought its toal quarterly deliveries to 25,768. This is a new quarterly delivery record for Nio, as the EV maker is cashing in on the rise in demand for electric vehicles.
The news comes as a relief to Nio investors as the company has repeatedly warned that ongoing supply chain issues will affect production this year. Nio saw its stock tumble last month as the company provided lower guidance for deliveries than was expected. The quarterly delivery record is a positive step, especially amidst another series of lockdowns following further COVID-19 outbreaks in China. Of the major domestic EV makers in China, Nio is the only one to have not raised its prices to battle higher costs for chips and other essential parts for manufacturing.
Delisting Threats are Fading
The other dark cloud that was looming over Nio and other Chinese ADR stocks was the threat of being delisted from the US markets. After a report that Beijing is working to accommodate US auditors and provide financial information for US-listed companies, it seems that the sides have come to some sort of agreement for the time being. While Nio has always been transparent with its financials, the SEC recently listed major companies like Baidu (NASDAQ:BIDU) as being uncooperative with US auditing regulations.
This is certainly a step in the right direction for Nio after the stock has lost about 35% so far in 2022. Suffering from the growth stock correction and the downward selling pressure for Chinese ADR stocks, it seems like at least one of these issues has now been resolved for Nio. Perhaps with the removal of the delisting risk, Nio’s other catalysts will help propel the stock back to previous highs.
Nio Stock Forecast 2022
At the end of April, Nio is set to release its ES7 SUV model, which comes on the heels of the first deliveries of Nio’s premium ET7 sedan. The ET7 sedan has a range of up to 1,000 km and has so far received rave reviews. Later this year, Nio is also set to launch its ET5 sedan, which is believed to be the top contender for Tesla’s (NASDAQ:TSLA) Model 3.
On top of that, Nio is also opening its second production facility later this year, and is continuing on its path to global expansion by tackling several more markets in Europe including the automotive hub in Germany. If the threat of delisting has been removed, Nio could see a bullish rebound later this year. With the price of gasoline continuing to surge, it isn’t surprising that interest in electric vehicles is at an all-time high. With the Chinese EV market establishing itself as the strongest in the world, Nio is positioned to continue to be one of the hometown favorites.
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