Shares of Nio (NYSE:NIO) stock opened lower by about 3% after the Chinese electric vehicle (EV) company disclosed its deliveries for the month of May. For the month, Nio delivered only 6,155 vehicles, down by 12.37% compared to deliveries of 7,024 vehicles in May of 2022. Through 2023, Nio has now delivered a total of 43,854 vehicles, up by 15.8% YOY. That brings cumulative deliveries since inception to a total of 333,410 vehicles.
Of the 6,155 vehicles delivered in May, 2,396 of them were premium smart electric SUVs, while the remaining 3,759 were premium smart electric sedans. NIO stock fell on the news, as deliveries have been on a steady decline since February when deliveries totaled 12,157 vehicles. Deliveries fell by 7.55% compared to April, while April deliveries declined by 35.85% compared to March.
Other Chinese automakers who released their May deliveries didn’t fare well at the open either, including Li Auto (NASDAQ:LI) and XPeng (NYSE:XPEV).
However, NIO stock has started rallying and has almost entered the green. And both LI and XPEV stocks are now above 1% as well.
NIO Stock Falls on Declining Deliveries
Nio launched its new ES6 EV on May 24 and began deliveries the following day. “Derived from NIO Technology 2.0 (NT2.0), the All-New ES6 offers enhanced driving and riding experiences with exquisite design, high performance, superior comfort, and advanced digital systems,” explained the company. This month, Nio is slated to launch and begin deliveries of its mid-size smart tourer called the ET5 Touring.
Meanwhile, Nio has confirmed that it will report its first-quarter earnings on June 9 before the market opens. Analysts are expecting revenue of $1.681 billion, implying YOY growth of 18.37% and a quarter-over-quarter decline of 26.97%. Furthermore, adjusted EPS is forecasted to be a loss of 41 cents, while adjusted net income is expected to be a loss of $652 million. Profitability remains a stretch for Nio, as analysts have forecasted negative adjusted and GAAP EPS for each quarter of 2023.
Following earnings, Nio will hold its annual general shareholders’ meeting on June 26. Shareholders of record as of May 25 will be able to cast their votes for two proposals. Proposal number one seeks to re-elect Hai as an independent director on the board, while proposal number two seeks to re-appoint Pricewaterhouse Coopers Zhong Tian as the auditor of the company.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
