Strong July Deliveries Could Drive Nio Stock’s Rally

Chinese luxury electric vehicle maker Nio stock published its delivery numbers for July, indicating that it sold a total of 20,462 EVs for the month, marking an increase of almost 104% year-over-year and roughly double the June figure of 10,707 vehicles. Nio’s performance was considerably better than rival Xpeng, which delivered 11,008 vehicles, although it continued to fall well behind rival Li Auto which delivered 34,134 vehicles for the month, up by 228% versus the last year.

While uptake for Nio’s vehicles was sluggish earlier this year, amid mounting competition from EV bellwether Tesla
TSLA
and Li Auto, as well as slower-than-expected Chinese economic growth following the Covid-19 reopening, Nio has benefited from a couple of factors of late. Firstly, the release of the updated ES6 SUV, which was launched in May, appears to have helped the company. Nio also cut prices on its vehicles by about $4,200 in early June, accounting for close to 10% of the starting price of some vehicles and this could have stimulated demand to a certain extent.