Shares of NIO Inc. (NIO) surged 5.36% in the pre-market trading session on Thursday as the Chinese electric vehicle maker reported strong delivery numbers for December 2024, riding on growing demand for EVs.
NIO delivered a record 31,138 vehicles in December, representing a remarkable 72.9% year-over-year increase. The company's cumulative deliveries reached 671,564 as of December 31, 2024. For the full year 2024, NIO achieved total deliveries of 221,970 vehicles, up 38.7% compared to 2023.
The robust delivery numbers can be attributed to several factors:
- NIO offered promotional incentives in December, including a RMB 5,000 ($680) cash subsidy for repeat purchases of its volume models and RMB 10,000 for higher-priced vehicles. The company also offered discounts for aged inventory and waived battery subscription payments to boost sales.
- Rising demand for NIO's new models, such as the ET9 flagship sedan expected to start deliveries in March 2025, and the Firefly compact car slated for launch in April, likely contributed to the surge in orders.
- Concerns over the potential reduction or elimination of China's RMB 20,000 trade-in subsidy for EV purchases may have prompted buyers to bring forward their purchase decisions to December.
NIO's strong performance in December reflects the growing popularity of EVs in China, the world's largest automotive market. However, intense competition from rivals like Tesla, BYD, and Li Auto, coupled with potential price wars and uncertainties surrounding government subsidies, could pose challenges for NIO in the coming months.
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