The good news keeps coming for Nio investors

“Let the good times roll” is probably what Nope (NO 1.04%) investors are telling themselves right now, after the stock is up 65% in the past month. The Chinese electric vehicle (EV) maker has a lot to offer: it just started deliveries of the Onvo L60; received an infusion of cash from strategic investors; and now, it just announced strong September shipments and a quarterly record.

Strong deliveries

Nio has quietly counted five consecutive months with shipments exceeding 20,000. Nio delivered 21,181 vehicles in September, which was good for a 35% increase over the previous year’s deliveries. It also included the first deliveries of the company’s more affordable sub-brand, Onvo. Nio’s newly launched brand totaled 832 deliveries in September. For the third quarter of 2024, Nio delivered 61,855 vehicles, which was up 11.6% year-on-year and good for a new quarterly record for the company.

Data source: Nio delivery press releases. Graphic source: Author.

When you look at the chart above, you can see a trend of higher shipments, but it’s also fair to say that Nio has taken a step over the last five months of over 20,000 shipments. It’s also true that the Nio will likely increase sales a notch higher as Onvo L60 production ramps up. Not only will the Onvo L60 boost shipping numbers in the future, but the company isn’t stopping with just one more affordable sub-brand. There’s another brand on the way, expected to be unveiled in late 2024 and internally codenamed “Firefly.”

While the electric vehicle market in China is very competitive, there is also a bigger piece of the pie to take a slice of. Consider that in July, China’s EV market share of new car sales was over 50% for the first time. That’s huge when you consider EVs’ market share of US new vehicle sales is about 8%. Nio’s premium vehicles have captured the attention of Chinese consumers, but there’s plenty of market share it can attack at the lower end of the market with its more affordable Onvo and Firefly brands, and that should send Nio’s deliveries and share price up a notch. bigger.

Cash infusion

Nio’s strong deliveries weren’t the only recent positive development. Nio recently announced a cash injection from a strategic group of investors. More specifically, Nio China will receive 13.3 billion yuan, or about $1.9 billion, from its parent Nio and the investor group that includes Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment and CS Capital. More specifically, the collection of strategic investors will invest a total of 3.3 billion yuan, or about $471 million, in Nio China, while Nio has agreed to channel 10 billion yuan, or about 1, 43 billion dollars in cash to subscribe to the new Nio show. China’s actions.

What does it all mean?

Let the good times roll. Nio is receiving an infusion of cash at the right time as it begins to really push its Onvo brand into the consumer market and prepares to unveil its next sub-brand – Firefly. Nio clearly has momentum on its side, with five consecutive months of over 20,000 shipments and a record quarterly result. Nio’s stock may be up 65% in the past month, but its momentum should continue as new brands boost sales to new records.