Chinese luxury electric vehicle maker Nio stock published its delivery numbers for June, indicating that it sold a total of 10,707 EVs for the month, up 74% compared to May, although this marks a decline of about 17% from a year ago. While Nio’s performance was better than rival Xpeng, which saw just about 8,620 units sold in June, down 44% year-over-year, it continues to fall behind rival Li Auto, which delivered 32,575 vehicles, up 150% from the 13,024 delivered in June 2022. Nio’s overall Q2 numbers were also down by 6.1% from a year ago.
Uptake for Nio’s vehicles has been sluggish amid mounting competition from EV bellwether Tesla
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Nio currently trades at just about $10 per share, more than 80% off its all-time highs. Does this make the stock worth a look? We think so. Nio has also been refreshing its product lineup, with the new EC7 coupe SUV, as well as the all-new ES8 SUV, and the recently launched ET5 Touring. Nio has also indicated at a recent investor conference that it expects to see an average of 20,000 vehicle deliveries each month over the second half of the year. The company also intends to bolster its gross margins to about 15% by the fourth quarter, driven by new model launches and higher scale. The stock also presently trades at just about 1.4x estimated 2023 revenues, which is well below other EV players such as Tesla and Li Auto. See our analysis of Nio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare? for a detailed look at how Nio stock compares with its rivals Li Auto and Xpeng.
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