Sometimes a company may just need to swap out its battery to keep charging higher. At least, that looks to be the case with Chinese electric vehicle leader Nio (NYSE:NIO) today. After a few rough days in the red, NIO stock is climbing higher Tuesday. This comes after Nio reported another monthly record for vehicle deliveries. So what do you need to know right now?
- Nio delivered 5,291 vehicles in November 2020, a 109.3% improvement year-over-year.
- The November figure is also up 4.7% from 5,055 vehicles in October 2020.
- Year to date, Nio has delivered 36,721 vehicles in 2020. This is up 111.1% year-over-year.
- Additionally, Nio released a cumulative delivery figure for its ES8, ES6 and EC6 models.
- Since the company began delivering vehicles, it has reported 68,634 deliveries.
- Deliveries of the ES6, its performance-focused electric SUV, lead the way in November.
- Importantly, Nio delivered 2,386 ES6s.
- Nio also delivered 1,387 ES8s and 1,518 EC6s.
- Investors should note that deliveries of the new EC6 rose nearly 72% month-over-month from 883 deliveries in October 2020.
- After setting a new monthly record in October, Nio said that it has once again set a record for November 2020.
- With this in mind, the company said in the press release that it will be expanding its production capacity for December to meet growing demand.
- Growing production capacity was also a focus of its third-quarter earnings call.
Why November Deliveries Matter for NIO Stock
In many ways, the appeal of the November deliveries report should be obvious. As Nio continues to gain legitimacy and appeal from U.S. investors, it is important that the company is actually expanding its footprint in China and ramping up its production capacity. With this in mind, the fact it is continually setting new delivery records is very promising. In fact, investors have bid NIO stock up more than 1,000% so far in 2020.
However, the November deliveries report follows a rough few days of trading. Just yesterday, we saw shares close out lower by 6.4%. So what is behind the rough patch? Well, Nio and its peers Xpeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) have struggled thanks to a few catalysts.
As we reported last week, the Chinese National Development and Reform Commission is asking its regional branches for more information on local EV makers. Unfortunately, it is still too early to know exactly what that will mean for Nio and its peers.
However, with promising November deliveries in the rear-view mirror, perhaps investors will forgive NIO stock. Additionally, there is one more reason for enthusiasm. According to several reports, Nio representatives were featured on a national Chinese TV broadcast to talk about the EV market. Beyond being good press, many see it as a sign the government will continue to support NIO stock.
NIO shares are up 2.2% in pre-market trading.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.