NIO stock has gotten a boost from record EV sales in China but needs another push higher.
NIO: Weekly Chart
The price of NIO has been trending downward and really needs to target the $13 level on the US ADR.
NIO reported over the weekend that it delivered 10,707 EVs in June, up 74.0% from a disappointing May but down 17.4% from a year ago. For the second quarter, Nio delivered 23,520 EVs, down 24.2% from the first quarter and 6.1% from a year ago.
The company has also deployed 1,339 Power swap stations, 1,285 Power Charger stations with 6,467 chargers, and 1,154 destination charging stations with 7,993 chargers around the world.
Nio stock benefited from a price cut strategy and is now betting on the recently launched ES6, which is a new SUV it hopes will bring new buyers. The company raised cash from investors linked to the Abu Dhabi government this year with a $738 million cash infusion.
NIO can mount a further rebound from here despite tough competition in the EV space in China. BYD led the way in overall sales, with Tesla taking second in June. However, other domestic rivals, Li and Xpeng, also saw sales boosts over the period.
The Shenzhen-based BYD, backed by Warren Buffett’s Berkshire Hathaway, sold 253,046 cars last month, a 5.3 percent gain over May.
Sina Auto Insights said:
“Price cuts should temporarily boost sales, but NIO may have to recalibrate its product and pricing strategy”
NIO stock could get a boost in the coming weeks, as VandaTrack research said that it has seen some signs of investors rotating out of AI stocks and into laggard names in the EV sector.
