Nio Inc. (NYSE:NIO) reported Tuesday another monthly record deliveries and signaled rising demand for its electric vehicles. The numbers led to a healthy gain in share prices once the market opened.
Nio's November deliveries jumped 109.3% year-over-year to a record monthly number of 5,291 units. This represented a 4.7% month-over-month increase from the 5,055 vehicles the company delivered in October.
November marked the fourth straight month where the company has churned out a record monthly total.
In its third-quarter earnings release, Nio guided to fourth-quarter deliveries of 16,500 to 17,000 units, up 100.6% to 106.7% year-over-year and 32.5% to 39.3% sequentially.
To hit the high-end of the target, the company has to deliver 6,654 vehicles in December.
The November deliveries comprised 1,387 ES8s, 2,386 ES6s, and 1,518 EC6s — which Nio began delivering in late September. EC6 deliveries totaled 883 in October.
After a hot streak up until recently, Chinese EV stocks have come under pressure, although they are still trading with strong year-to-date gains. Apart from the opportunity presented by the booming Chinese EV market, fundamentals and execution matter.
If Nio can sustain its post-pandemic resurgence, some of the premium at which the stock trades could be justified.
Regulatory risk has also come into play, with a Chinese media outlet recently reporting that the country's regulators are planning to clamp down on investments by local EV companies.
NIO shares advanced 54 cents, or 1.1%, to $51.07.
