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Nio reported that it had completed deliveries of 3,965 vehicles in August, marking an impressive year-over-year rise of 104.1%. However, the stock hasn’t reacted positively to this announcement.
The Chinese based electric auto vehicle producer Nio Inc (NYSE: NIO) has reported record vehicle deliveries for the month of August. Meanwhile, today NIO stock is 4.95% down (at $17.09) in the pre-market, despite the positive news.
Nio, a pioneer in the Chinese electric vehicle space noted that it completed deliveries of 3,965 vehicles in August, marking an impressive year-over-year rise of 104.1%. This reflects a 12.2% jump from the 3,533 vehicles delivered in July.
The August deliveries comprised a 2,840 of the ES6 model, the company’s 5-seater high-performance premium smart electric SUV, and 1,125 ES8 models, Nio’s 6- and 7-seater flagship premium smart electric SUV. By the end of the reported month, the aggregate deliveries of ES8 and ES6 models were as high as 53,580, including 21,667 deliveries made in 2020 thus far.
“In August, we achieved our best-ever monthly performance on both deliveries and order growth,” said William Bin Li, founder, chairman, and chief executive officer of NIO. “As we continue to improve the production capacity for all NIO products, our monthly capacity will reach 5,000 units in September to support our future deliveries. With the closing of our recently announced ADS offering, we have further enhanced our balance sheet and optimized our capital structure to be better prepared for the acceleration of our core technology development, autonomous driving in particular, and the global market expansion in the future.”
Nio Deliveries Consolidate Its Growth Trend
Nio’s reported vehicle deliveries in August consolidates the company’s new growth trajectory as revealed in its last quarterly report.
Coinspeaker reported earlier that the company recorded a 240% growth this year despite the economic down plunge caused by the coronavirus pandemic. Following this impressive growth, the automaker has declared that it has plans to venture into other markets starting in the second half of next year.
The company’s rejuvenation came following the company’s financial turmoil which it managed to overcome thanks to a $1 billion bailout funds from investors as enhanced by the Hefei government.
Recently, Nio announced that it had completed the offering of 101.8 million American depositary shares (ADS) at a price of $17.00 per ADS, to raise $1.73 billion. With the new proceeds, the company aims to further improve its balance-sheet position and restructure the capital composition in order to rev up Nio’s technological advancement, with a primary focus on electric and autonomous vehicles.
Nio Joins Other Auto Makers in Giving Tesla Stiff Competition
The year has been impressive for American electric automaker Tesla Inc (NASDAQ: TSLA), who has beaten investor’s expectations and expanded its operations for more growth.
With these impressive run, other automakers including Nio has been actively giving Tesla (TSLA) a stiff competition in the electric auto market space. Besides Nio, companies like Tortoise Acquisition Corp (NYSE: SHLL) and Workhorse Group (NASDAQ: WKHS) are among the top brands with the potential to offer a unique electric auto product to even a more unique customer base.
As detailed by the Motley Fool, Tortoise Acquisition (SHLL) is a Special Purpose Acquisition Company (SPAC) that is in the process of merging with electric drivetrain specialist Hyliion. With the acquisition, both companies will help trucking companies maintain their fleet while integrating electric components for energy efficiency and carbon emission reduction.
The potential of the shares of Workhorse Group Inc (NASDAQ: WKHS) to also outpace Tesla (TSLA) in the coming months can be enhanced if the electric trucking companies win the United States Postal Service Contract. It has already been listed as one of three favored to win the bid.