Stocks of Nio Surge After August Ev Deliveries Leap 81%

Nio Inc. saw its shares rise on Friday, marking a positive start to September, as the China-based electric-vehicle manufacturer reported a significant surge in its delivery numbers.

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During premarket trading, Nio's stock (NIO) gained 1.8%, potentially ending a three-day downtrend. August had been a challenging month for the company, with its stock closing at an eight-week low of $10.27 the previous day.

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The company disclosed that it successfully delivered 19,329 vehicles in August, marking an impressive 81.0% increase compared to the 10,677 electric vehicles (EVs) delivered during the same period a year ago. This strong performance followed a remarkable doubling of deliveries in July when Nio delivered 20,462 EVs.

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Nio's deliveries for August comprised 12,015 sport-utility vehicles and 7,314 sedans. Year-to-date, Nio has delivered a total of 94,352 vehicles, reflecting a robust 31.9% increase from the 71,556 EVs delivered by the same time last year.

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Throughout August, Nio's shares experienced a decline of 32.9%, representing its most significant monthly decline since a 38.7% drop in October 2022. This decline made Nio significantly underperform its peers and the broader market. The three-day losing streak at the end of the month followed a less optimistic second-quarter report, which featured widened losses and revenue falling short of forecasts.

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On a positive note, shares of other China-based EV manufacturers also experienced gains on Friday, while Tesla Inc. (TSLA) saw a slight decline.

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Li Auto Inc.'s (LI) stock showed a 1.9% increase ahead of the market opening, following the company's announcement of a remarkable 663.8% surge in August deliveries, totaling 34,914 EVs. Li Auto reported that each of its three Li L series models exceeded 10,000 deliveries.

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XPeng Inc.'s (XPEV) shares rose by 3.2% after the company revealed that it had delivered 13,690 EVs in August, marking a substantial 42.9% increase from the 9,578 EVs delivered in the same period the previous year.

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In contrast, Li Auto's stock had declined by 2.7% in August, and XPeng shares had fallen by 15.0%. Comparatively, the iShares MSCI China ETF (MCHI) had decreased by 9.8%, and the S&P 500 index (SPX) had eased by 1.8% during the same month.

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Meanwhile, Tesla, which generated 23% of its total second-quarter revenue from China, experienced a 0.4% premarket decline following a 3.5% loss in August. The company decided to reduce prices on its Model S and Model X EVs in China as part of its strategy to stimulate sales, marking the second price reduction in two weeks.

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