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NIO stock falls on Tuesday in light of XPeng's drop in delivery guidance NIO stock falls on Tuesday in light of XPeng's drop in delivery guidance

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NIO falls despite hitting targets as Tesla’s miss overshadows whole sector – Crypto News

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  • Nio delivered 15,641 vehicles in September, meeting its quarterly target.
  • NIO stock added about 1% on the delivery news in Monday premarket.
  • Nio delivered 55,432 in the third quarter, a 75% gain YoY.
  • Competitors XPeng, Li Auto are seeing much swifter growth.

Nio (NIO) stock dropped 2.3% on Monday morning despite meeting its quarterly delivery target for the third quarter. Tesla’s (TSLA) Q3 production and delivery decline is the culprit. In the third quarter, Elon Musk’s company produced 430,488 and delivered 435,059 vehicles. This fell from production of 479,700 vehicles and deliveries of 466,140 in the second quarter.

Nio, the Chinese electric vehicle (EV) purveyor, met its quarterly delivery target after announcing deliveries of 15,641 units in September. That figure, helped by a surplus of SUV sales, pushed Nio to meet management’s third-quarter target of deliveries between 55,000 and 57,000.

NIO’s stock price is also helped by positivity concerning a US Congressional deal over the weekend that gave the legislative body another six weeks to hammer out a budget without shutting down the federal government, as was earlier predicted. The NASDAQ Composite has gained 0.5% at the time of writing.

Nio stock news: Q3 deliveries rise 75% from a year ago

On Sunday, Nio unveiled its delivery update for the final month of the third quarter. Total deliveries of 55,432 surmounted management’s forecast at the beginning of the quarter, but deliveries did decline month-by-month during the quarter. 

July’s 20,462 deliveries were followed by August’s 19,329 deliveries and September’s 15,641. No reason was given why deliveries dropped on a monthly basis. In total, the third quarter witnessed a 75% surge in deliveries YoY, while September deliveries rose 44% YoY.

September’s figures consisted of 11,504 electric SUVs and 4,137 electric sedans. The better mix of SUVs will likely help Nio’s struggle with profitability when it reports Q3 earnings on November 9.

However, Nio’s primary competitors – XPeng (XPEV) and Li Auto (LI) –  both overshadowed Nio’s data from September. XPeng reported an 81% surge in YoY deliveries to 15,310. Even more impressive, Li Auto’s September deliveries exploded 213% from a year ago to 36,060. 

Also, unlike Nio, Li Auto and XPeng both experienced rising MoM delivery figures. Both EV companies advanced 1% or more in the premarket.

Nio’s share price has been beaten down since the automaker raised more than $1 billion in a dilutive convertible bond offering in mid-September. Nio’s share price fell more than 20% following the announcement, but has recently rebounded around 10%.

 

NIO FAQs

Nio is a designer and manufacturer of electric vehicles based in Shanghai, China. Formerly known as NextEV, the company changed its name to Nio in 2017. Nio trades under the NIO symbol on the New York Stock Exchange (NYSE) and under the 9866 tag on the Hong Kong Stock Exchange. The company was incorporated in 2014 but went public on the NYSE in September 2020 with a $1.8 billion initial public offering. William (Bin) Li is the CEO of Nio, which he co-founded with President Lihong Qin, another Chinese business executive.

The main difference with other major EV brands like Tesla is that Nio offers battery swapping technology in addition to normal charging options. These swap stations allow drivers to switch out their batteries for fully-charged, identical batteries in less than five minutes, which allows owners to drive long distances without needing to stop for an hour to recharge like most other EVs. At the end of 2022, Nio had 1,305 battery swap locations and built its first swap station in Norway in May 2022. The goal for the customer is to reduce range anxiety.

Nio began its reign with the EP9 sport car back in 2016, and the vehicle is still being produced on a small scale. Since then, Nio has branched off into more mainstream fare. The ES8 was introduced in 2018. It is a full-size SUV with a range of 311 miles. The ES6 SUV dropped the following year and has a range of 379 miles. The smaller EC6 SUV arrived in 2020, and the ET5 and ET7 sedans were released in 2021 – the latter two with versions capable of achieving 621 miles of range. The ES7 and EC7 arrived in 2022 and 2023, respectively.

Yes. While the vast majority of Chinese automakers focus wholly on the Chinese market, Nio began its foray into Europe in late 2021. After beginning in Norway, Nio began entering the German, Danish, Dutch and Swedish markets in 2022 with plans to expand throughout the rest of the decade. Although they are not yet sold in the US, Nio vehicles are being tested in California under that state’s autonomous driving program.

Nio stock forecast

Nio stock still needs to clear the $9.50 level to make the market take this miniature rally seriously. After seeming to bottom at around $8 a share early last week, NIO stock was able to rally up past $9. The $9.50 level has worked as support on August 29, back in April and at the very start of 2023. It also showed the quality of resistance in February and March, so we might expect it to do so again on a first test.

Nio stock has already closed above the 9-day Simple Moving Average (SMA) last week, so the 21-day SMA is the next obstacle. Being that it sits just a bit above $9.50, this gives the overall region around $9.50 more significance. A break and close above $9.50 would see Nio attempt to penetrate the $10.15 to $11.30 high-volume region that has had a tendency to slow down rallies. 

NIO daily chart

 

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