Bullish options flow was detected in NIO stock in early trading on September 15, 2020.
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Deutsche Bank analyst Edison Yu initiated coverage of NIO Inc. (NIO) with a Buy rating and $24 price target. The stock closed Friday down 73c to $17.98. There is an emerging class of Chinese automakers backed by large, well capitalized tech titans and “ambitious” local governments looking to disrupt the auto industry: NIO, Xpeng, Li Auto, and WM Motor, Yu tells investors in a research note. NIO is the leader of “Fab Four” given its stronger brand perception, higher sales volume, focus on the premium SUV segment, and “battle-tested” operational track record, contends the analyst. Further, Yu thinks all four can co-exist with Tesla (TSLA) “as there is still plenty of runway to capture market share away from traditional ICE automakers.” With the China electric vehicle market already the world’s largest and now “inflecting upward after the recent downturn,” NIO is well positioned to take share in the premium segment, says the analyst.
On September 3, 2020, Credit Suisse analyst Bin Wang raised the firm’s price target on NIO Inc. $25 from $17.50, a new Street-high. The analyst notes that NIO’s August delivery volume hit a record high of 3,965 units, up 104% year-over-year/12% month-over-month, close to its current maximum capacity of monthly 4k units. NIO guided its capacity will increase to 5,000 units in September and guided its monthly new orders to hit record high in August-above 5k units, he estimates. Wang attributes the higher new order flow to some front-loading demand before the discontinuation of unlimited free battery swap.
On September 3, 2020, NIO Inc. provided its August 2020 delivery results.
NIO delivered 3,965 vehicles in August 2020, representing a strong 104.1% year-over-year growth. The deliveries consisted of 2,840 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 1,125 ES8s, the Company’s 6-seater and 7-seater flagship premium smart electric SUV. As of August 31, 2020, cumulative deliveries of the ES8 and the ES6 reached 53,580 vehicles, of which 21,667 were delivered in 2020.
“In August, we achieved our best-ever monthly performance on both deliveries and order growth,” said William Bin Li, founder, chairman, and chief executive officer of NIO. “As we continue to improve the production capacity for all NIO products, our monthly capacity will reach 5,000 units in September to support our future deliveries. With the closing of our recently announced ADS offering, we have further enhanced our balance sheet and optimized our capital structure to be better prepared for the acceleration of our core technology development, autonomous driving in particular, and the global market expansion in the future.”