nio reports august deliveries

NIO (NYSE: NIO) stock is trading lower in US premarket price action today after the Chinese EV (electric vehicle) company released its August delivery report. Fellow Chinese EV makers’ Li Auto and Xpeng Motors are also in the red after reporting their August deliveries.

While Chinese EV companies report their deliveries on a monthly basis, US-based companies like Tesla and Lucid Motors provide the report on a quarterly basis. In the second quarter of 2022, Tesla’s deliveries fell on a quarterly basis due to the lockdowns in China. The company also lost its title as the world’s largest seller of new energy vehicles, ironically to BYD Motors which is based in China.

Coming back to NIO, the company delivered 10,677 cars in August, which was 81.6% higher YoY. It delivered 71,556 vehicles in the first eight months of the year which took its cumulative deliveries to 238,626.

NIO Stock Falls after August Deliveries

Nio delivered 7,551 SUVs in the month while the remaining 3,126 were sedans. During the month, it also delivered 398 ES7 SUVs. The company did not comment on the delivery report. This looks likely due to the upcoming earnings release which is scheduled for September 7.

Analysts expect NIO to report revenues of $1.4 billion in the second quarter of 2022, a YoY rise of 15.1%. However, it is expected to post a net loss of $296 million in the quarter. Barring Tesla, all other major pure-play EV companies are posting losses. Tesla was also barely profitable in the initial years.

However, it turned sustainably profitable in the third quarter of 2019. Since then, it has posted a profit in every quarter, including in the first half of 2020 when the global automotive industry posted massive losses due to the lockdowns.

Tesla has been ramping up production at the Berlin and Texas Gigafactories. After a visit to the Berlin plant, UBS reiterated its buy rating on Tesla stock. We have a guide on how to buy Tesla stock in 2022.

Meanwhile, markets don’t seem impressed with NIO’s August deliveries, and the stock is lower today. Other Chinese EV stocks are also down.

Here’s How NIO Deliveries Compare with Other Chinese EV Companies

Li Auto and Xpeng Motors also released their August deliveries. Xpeng Motors delivered 9,578 EVs in August, which was 33% higher than the corresponding period last year. Its deliveries totaled 90,085 in the first eight months of the year. After outselling NIO for the last few months, Xpeng Motors fell behind NIO in August. However, on a YTD basis, Xpeng is still ahead of NIO.

Li Auto delivered 4,571 cars in August, which was less than half of what it delivered in the corresponding month last year. While NIO and Xpeng reported a YoY rise in deliveries, Li Auto saw a steep fall in its August deliveries. Meanwhile, its cumulative deliveries reached 199,484 as of the end of August.

Li Auto released its second-quarter earnings last month. It reported revenues of $1.3 billion in the quarter, which were 73.3% higher YoY. The revenues however fell short of estimates. The company’s gross profit almost doubled over the period to $280.4 million at an impressive vehicle margin of 21.2%. However, its net losses also swelled to $95.5% which is 172% higher than the second quarter of 2021.

Xpeng Motors Provided Tepid Delivery Guidance

In contrast, Xpeng Motors reported revenues of $1.11 billion in the quarter, which was almost 98% higher YoY and was ahead of the $1.06 billion that analysts were expecting. However, Xpeng Motors provided soft guidance for the third quarter and expects to ship between 29,000-31,000 cars in the third quarter of 2022.

Markets would next look forward to NIO’s earnings. Wall Street analysts are however overwhelmingly bullish on NIO given its strong brand and backing from China. In June, Morgan Stanley analyst Tim Hsiao advised buying NIO stock and called it a “tactical idea.”

More recently, Ron Baron added more NIO shares. The billionaire fund manager also added shares of Lucid Motors in the second quarter of 2022.

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