NIO (NIO) expected to hit Q2 delivery target after record 20.5K sold in May

After setting a new delivery record in May, NIO (NYSE: NIO) is expected to deliver over 54,000 EVs in the second quarter. Despite a slight decline from May’s numbers, NIO is projected to deliver over 18,000 EVs in June, which would be enough to top its Q2 delivery target.

Analysts see NIO hitting Q2 delivery target

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

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

Through the first five months of 2023, NIO has handed over 66,217 EVs, representing 51% growth from last year.

Despite missing first-quarter estimates, Wang’s team predicts better results in Q2. At 18,200, NIO’s Q2 deliveries would total 54,200, on par with its guidance of 54,000 to 56,000.

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

More tailwinds

Following the new 2024 ET7 launch in April, NIO’s lineup is entirely refreshed. NIO’s lineup now includes the 2024 ET5, ET5T, EC6, ES6, EC7, ET7, and ES8 based on its NT 2.0 platform.

NIO also unveiled its new low-cost Onvo brand 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.

Wang’s team sees the big things out of the new mass-market brand. Earlier this month, a note to investors read, “We think Nio’s expectation of monthly >20,000 unit delivery is achievable with a boost from Onvo.”

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

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

The third factory is expected to raise NIO’s total production capacity to 1 million, on par with Tesla’s Shanghai plant (1.1 million).

Lihong told local Blue Whale News that NIO’s production capacity had reached single shift capacity. He added, “NIO does not have an overcapacity problem.”

Despite the growth, NIO’s stock is down over 47% this year and 92% from its all-time high of over $62 per share in February 2021. Other EV stocks like Rivian (-48%), Lucid (-39%), and Tesla (-26%) are down year-to-date.

Earlier today, Electrek reported Tesla is expected to have a tough Q2 for deliveries. Wall St expects Tesla to deliver 450,000 vehicles in the second quarter, which would be down from 466,000 in Q2 2023.

Source: CnEVPost