One of the top EV makers, Nio (NYSE:NIO) is blasting in all directions with strong delivery numbers. Nio stock was already soaring with anticipation of high delivery numbers and it is expected that the stock will continue the momentum.
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Even the pandemic could not stop the momentum of Nio and it has gained a stronghold in the industry.
Nio is my top EV pick, and I have always been bullish on the stock. The company has a lot working in its favor and it could give stiff competition to Tesla (NASDAQ:TSLA).
Nio stock is trading at $46 today after inching very close to $60.
The stock was as low as $31 on May 13 and in 6 weeks, it has hit $53 before this week’s slight pullback. Let’s take a look at the monthly and quarterly delivery numbers of Nio.
Record High Deliveries
Nio delivered 8,083 vehicles in June 2021 which is a record representing 116% growth year over year. The company delivered 1,498 ES8s, 3,755 ES6s, and 2,830 EC6s.
Over the quarter, it delivered a total of 21,896 vehicles which is a 111% growth year over year. The total deliveries for the company reached 117,597 vehicles, which is nothing less than a feat.
The first-quarter deliveries stood at 200,60. This quarter shows an increase in deliveries despite the chip shortage.
The company had projected deliveries between 21,000 and 22,000 vehicles for the second quarter and it has certainly met the delivery numbers. It also gives an insight that the revenue for the quarter will be close to the projections.
The stellar growth numbers reflect on Nio’s ability to scale production and hit new milestones. It also shows the high demand for vehicles and an increase in consumer confidence.
June numbers have made up for the deliveries in May that were low due to the chip shortage. The company is close to dominating the EV market in China and Hong Kong.
Nio has registered the trademark for EF9. There is no additional information about the model, but it is expected that the company will reveal it this year. It is a sports car that has been under works for a long time.
Wall Street loves NIO stock
I am not the only one bullish on Nio stock. Wall Street shares my opinion. Jeff Chung, a Citibank analyst has moved the price target of Nio from $58.30 to $72 with a buy rating.
Bocom had a buy rating for Nio stock with a price target of $57. Further, all 8 analysts on Tipranks have a buy rating on the stock with an average price target of $63, which is a 19% upside from the current levels.
Morgan Stanley has an overweight rating for the stock with a price target of $64.
Nio stock has the potential to hit triple digits but not anytime soon. However, over the next five years, Nio will be trading in triple digits.
The Bottom Line
I see Nio as a strong company that could supplant Tesla as the big name in EVs. The overall sentiment towards the EV industry is strong which has given a push to a lot of EV stocks.
Additionally, the company has announced the NIO Power day on July 9 which is a highly anticipated event where new technology and updates will be announced.
The company will provide a glimpse into the technologies and products associated with the Nio power unit.
A lot is working in the company’s favor and the stock is a long-term play. Tesla is losing ground in China and buyers are looking for alternative options.
Nio is a pure EV play that has the potential to hit high revenue and delivery numbers in the coming months.
The company is impressing investors with each delivery update and quarterly report.
Hold on to the stock for long-term gains.
On the date of publication, Vandita Jadeja did not have (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.
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