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At the 19th Shanghai International Automobile Industry Exhibition, a Nio eC6 automobile was on display.
Getty Images/AFP/Hector Retamal
The electric vehicle manufacturer in China
NIO
In June, the company delivered a record number of vehicles, causing the stock to rise once more. Other electric vehicle manufacturers’ stock is on the market in China.
Tesla
to
Li Automobile,
should be able to benefit from the information. NIO (ticker: NIO) reported 8,083 car deliveries in June, up from 6,711 in May, marking the first time the company has exceeded 8,000 monthly deliveries. NIO delivered well under 22,000 cars in the second quarter, exceeding the high end of the range forecasted at the start of June.
It’s a good outcome. Not only does this prove that NIO’s production capacity is expanding, but it also shows that demand for electric vehicles in China is still robust. The delivery figure also adds to the argument that the semiconductor shortfall that hampered global automotive production in the first half of 2021 is subsiding. The last two results are encouraging for all electric vehicle manufacturers. The stock of Tesla has increased by 0.6 percent, while
Auto Li
grew by 2.4 percent. In premarket activity, NIO stock was up 3.8 percent. Futures in the stock market
S&P 500 Index
and
The Dow Jones Industrial Average (DJIA) is a stock market index
respectively, were up 0.1 percent and 0.2 percent, while
Nasdaq Composite Index
Futures were down 0.1 percent. Investors and dealers were hoping for a positive delivery outcome. The stock of NIO increased by 38% in June and is up 18% for the week. Citigroup analyst Jeff Chung raised his price objective for NIO to $72 a share on Wednesday, citing high demand for electric vehicles as a reason. Recent advances have moved the stock back into the year’s positive region. The stock has gained 9% year to date, although it is still down around 21% from its January 52-week high of over $67. NIO’s market value has risen to almost $87 billion as a result of the advances.
GM is a company that makes automobiles.
(GM) and its market capitalisation of $86 billion. NIO hasn’t provided a full-year delivery prediction, but Citi’s Chung anticipates NIO to deliver around 93,000 units in 2020. In the third and fourth quarters of 2021, he predicts a sequential increase in deliveries. NIO delivered about 42,000 cars in the first half of 2021. Al Root can be reached at allen.root@dowjones.com./n
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