After months of weakness, NIO’s deliveries soared back strongly in June.
ET7 sedan deliveries increased 155.7% month over month and now represent a third of all of NIO's product deliveries.
ET5 and ET7 production are set to exceed volume production of the ES6 this year.
NIO's (NYSE:NIO) first-quarter production and delivery performance was greatly impacted by a variety of factors, including Chinese holidays and COVID-related shutdowns that limited factory output levels. In June, however, NIO experienced a surge in deliveries due to factories coming back online and accelerating demand for NIO’s first sedan product, the ET7. While COVID-19 shutdowns remain a significant risk factor going forward, a recovery in delivery volumes could drive an upwards revaluation of NIO’s shares.
Why NIO’s growth will be determined by sedan production going forward
NIO submitted its delivery card for June last week which revealed that the electric vehicle manufacturer delivered 12,961 electric vehicles, showing 60.3% year-over-year growth. On a month-over-month basis, NIO’s deliveries increased a massive 84.5% which was the fastest growth rate when compared against rival companies XPeng (XPEV) and Li Auto (LI). XPeng's month-over-month delivery growth rate was 51.1% while Li Auto saw 13.3% month-over-month growth.
XPeng, which currently has the fastest year-over-year delivery growth of the Top Three electric vehicle manufacturers delivered the most EVs last month: 15,295, showing 133% growth. Li Auto delivered 13,024 Li ONE sport utility vehicles in June, showing 68.9% year-over-year growth.
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