Nio (NYSE:NIO) stock is falling lower after the Chinese electric vehicle (EV) company released its July delivery figures. Nio delivered 20,498 vehicles, up by 0.18% compared to 20,462 vehicles a year ago. Premium smart electric SUVs accounted for 11,964 of the deliveries while premium smart electric sedans tallied in at 8,534.
Still, July marked the third consecutive month of 20,000-plus deliveries. In June, the company notched a record monthly high for deliveries at 21,209 vehicles.
For 2024, Nio has now delivered a total of 107,924 vehicles, up by 43.9% year-over-year (YOY).
NIO stock is also falling today on a weak Caixin/S&P Global manufacturing Purchasing Managers’ Index (PMI) update. The PMI tallied in at 49.8, missing the analyst estimate for 51.5. It was also the lowest figure since last October and declined from the last reading of 51.8. A reading of 50 marks the threshold between growth and contraction.
“The most prominent issues are still insufficient effective domestic demand and weak market optimism,” said Caixin Insight Group Economist Wang Zhe.
NIO Stock: Nio Delivers 20,498 Vehicles in July
So, what’s next for Nio? Amid a property crisis in China, consumers are less likely to gravitate toward luxury vehicles. Nio thinks it can accommodate this with the release of a new, more affordable brand called Onvo.
The brand’s first vehicle, called the L60, will be released in late September. It seeks to compete with Tesla’s (NASDAQ:TSLA) Model Y.
Preorders for the SUV are currently open with a starting price of 219,900 CNY, or $30,350. That’s a steep discount from Nio’s other vehicles, which range between 300,000 to 600,000 CNY.
Meanwhile, Nio recently held its IN 2024 Tech Day and revealed several new developments, such as taping out its Shenji NX9031 autonomous driving chip.
“Tape-out is a technical term used in the chip industry, which refers to the process of transforming a circuit design into a chip that can be produced on an assembly line after the chip design has been completed,” explained CNEVPost.
The chip must still reach several standards after the tape-out before mass production can begin. The company’s upcoming ET9 sedan will be equipped with the chip with deliveries slated for the first quarter of 2025.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
