NIO (NIO) expected to meet second quarter delivery target after record May 20.5k

After setting a new delivery record in May, NIO (NYSE: NIO) is expected to deliver more than 54,000 electric vehicles in the second quarter. Despite a slight decline from May figures, NIO is expected to deliver more than 18,000 electric vehicles in June, which would be enough to exceed its second quarter delivery target.

Analysts see that NIO will achieve the target for the second quarter

Deutsche Bank analyst Wang Bin’s team expects Chinese EV maker NIO to hand over 18,200 EVs this month.

If true, it would be a 68% increase from June 2023, but a slight 12% decline from May’s record. NIO delivered 20,544 electric cars in May, up 234% year-on-year and breaking the previous record of 20,462 set in July 2023.

During the first five months of 2023, NIO transferred 66,217 electric vehicles, representing a growth of 51% compared to last year.

Despite missing estimates for the first quarter, Wang’s team predicts better results in the second quarter. At 18,200, NIO’s Q2 deliveries would total 54,200, similar to expectations of 54,000 to 56,000.

Wang’s team noted that NIO’s domestic sales reached 7,000 in the first two weeks of June. The team also said that new order flow is estimated at around 22,000 after extending the ‘demo car’ discount.

2024 NIO ET7 (Source: NIO)

More tailwind

After the new 2024 ET7 launch in April, NIO’s line-up has been completely renewed. NIO’s range now includes the 2024 ET5, ET5T, EC6, ES6, EC7, ET7 and ES8, based on the NT 2.0 platform.

NIO also unveiled its new low-cost brand Onvo last month, designed to take on mass-market brands like VW and Toyota. The first model, the Onvo L60 electric SUV, starts at just $30,500 (219,900 yuan) as a potential Tesla Model Y rival.

NIO Onvo L60 launch event (Source: NIO

Wang’s team sees big things to come from the new mass-market brand. Earlier this month, a letter to investors said: “We believe Nio’s expectation of monthly shipments of >20,000 units is achievable with a boost from Onvo.”

NIO will launch a larger electric SUV under the Onvo brand next year, with more on the way.

NIO ET5 at new power switching station in Emsbüren, Germany (Source: NIO)

Earlier this month, NIO’s president and co-founder Qin Lihong confirmed that the EV maker had started construction on its third factory.

The third factory is expected to increase NIO’s total production capacity to 1 million, comparable to Tesla’s Shanghai factory (1.1 million).

Lihong told the locals Blue Whale News that NIO’s production capacity had reached one-shift capacity. He added: “NIO does not have an overcapacity problem.”

NIO stock chart over the past 12 months (Source: TradingView)

Despite the growth, NIO shares are down over 47% this year and down 92% from an all-time high of over $62 per share in February 2021. Other EV stocks like Rivian (-48%), Lucid (- 39%) and Tesla (-26%) has fallen this year.

Earlier today, Electricity reported that Tesla is expected to have a difficult second quarter in terms of deliveries. Wall St expects Tesla to deliver 450,000 vehicles in the second quarter, which would be down from 466,000 in the second quarter of 2023.

Source: CnEVPost

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