Chinese electric car maker Nio reported November delivery data figures that were flat to disappointing October numbers, spurring a more than 6% drop in its share price on Thursday.
Why it matters: The November delivery numbers highlight weak sales for the company’s lower-priced five-seat SUV, the ES6, which was expected to be a key sales driver.
- However, Nio beat out rivals WM Motor and Xpeng Motors in new energy vehicle (NEV) sales amid slumping overall auto sales for the first 10 months of the year, according to data recently released by China Banking and Insurance Regulation Commission.
Details: Nio delivered 2,528 electric vehicles (EVs) in November, almost flat sequentially to October, when it delivered 2,526 cars. November marked the fourth consecutive month of delivery growth, the company said in an announcement released Thursday.
- ES6 deliveries decreased 7% month-over-month to 2,067 units in November, with ES8s making up the balance. Nio did not address the decline in ES6s.
- Still, Nio’s delivery results contrasted with falling overall NEV sales in the country, which accelerated to 45.6% year on year in October, the fourth consecutive month of decline.
- Nio has delivered a cumulative total of 28,743 vehicles as of end-November since it began delivering cars in June 2018, with the ES6 making up about 30% of the total sales. The company began delivering the ES6 in June.
- Nio founder and CEO William Li Bin attributed the “solid” delivery results to an expanded sales network, adding that it has opened 37 Nio Spaces, touted as “more cost-efficient” than its clubhouse-style Nio Houses, of which there are 21.
- ES6 was the world’s top-selling all-electric car in the high-end luxury SUV segment in October, Li said in a public event late last month.
- Nio’s share price rose more than 5% after market opened on Thursday, but pared the gains and fell 6.2% to $2.27 by market close.
“Our strong sales performance was also attributable to the competitiveness of our ES6 among all premium electric SUVs and the passionate endorsement by our existing users… As we continue to build more cost-effective NIO Spaces and improve the performance of the existing ones, we are confident in our deliveries going forward.”
—William Li Bin
Context: Nio last month announced it will hold this year’s Nio Day, its annual press event, on Dec. 28 in Shenzhen, without revealing further details.
- Chinese media reported that the company is planning to launch its third mass market model, an updated ES6 coupe, roughly equal in price to the current ES6, which starts at RMB 358,000 ($53,000).