What happened
Shares of the Chinese manufacturer of electric vehicles NIO (NYSE: NIO) They were trading higher on Thursday, after the company reported sales totals for June and the second quarter that exceeded analyst expectations and its own guidance.
As of 1:15 pm EDT, shares of NIO’s US depositories rose approximately 16.7% from Wednesday’s closing price.
And that
NIO said it delivered 3,740 of its luxury electric SUVs in June, 179% more than a year ago and a record all-time monthly deliveries for the company. The result increased its total deliveries in the second quarter to 10,331 vehicles, 191% more than in the same period of the previous year and its best quarterly result.
Sales of NIO’s flagship ES8 have steadily increased since a revamped version was released earlier this year. Image source: NIO.
Automotive investors are right to cheer on the news. NIO has come a long way since the early 2020s, when its cash reserve was shrinking and the effects of the COVID-19 outbreak in China threatened to bring it to the brink of bankruptcy.
But after raising nearly $ 1 billion in new funds from economic development authorities in April, and with last year’s aggressive investments in an expanded sales network beginning to pay off, NIO appears to be on a streak.
Now what
Investors are now looking at earnings, and there are more reasons for optimism. Noting that NIO’s second-quarter total sales exceeded the company’s guidance, Chief Financial Officer Steven Feng said Thursday that he is confident that the company will meet or exceed its gross profit margin and “operating efficiency” targets.
NIO has not yet set a date for its second quarter earnings report, but it is likely to happen sometime in the second half of August.
