One of the stocks on many investors’ radar today is Chinese electric-vehicle maker Nio (NYSE:NIO). NIO stock is advancing 4.5% in early trading after the automaker unveiled its delivery data for July.
Nio’s July Delivery Data
Last month, the company’s deliveries climbed 27% versus the same period a year earlier to 10,052 EVs. However, its deliveries sank 22% compared with the previous month. So far in 2022, Nio’s deliveries have climbed 22% year-over-year (YOY) to 60,879 EVs.
“The deliveries consisted of 7,579 premium smart electric SUVs, and 2,473 premium smart electric sedans,” the EV maker reported.
The automaker reported that in July, the production of its EVs was limited by a shortage of casting parts.
Nio stated that it “has been working closely with supply chain partners and expects to accelerate vehicle production “during the rest of the third quarter of this year.”
Barron’s noted that vehicle sales typically drop during the summer. But the publication added that this summer, the deliveries of vehicles in China have been stronger than usual.
Barron’s attributed the disparity to anti-Covid-19 measures implemented by Beijing in the spring. Those restrictions limited production last quarter, causing many buyers to be unable to receive, until recently, the vehicles that they had purchased last quarter.
An Analyst’s Take on NIO Stock
On June 30, HSBC analyst Yuqian Ding increased the firm’s price target on NIO stock from $26 to $28. Ding predicted that the automaker’s monthly volume would continuously improve’ as its production rises in the last six months of the year. Adding that the company is expected to launch new EVs starting in 2023, the analyst maintained a “buy” rating on the name.
In the last three months, the shares have climbed 18%, but they are still down 35% so far in 2022.
On the date of publication, Larry Ramer held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.