Nio Enjoys Strong Sales Despite Market Slump
The Chinese Tesla rival met its delivery goals for 2019 after a 25% growth in deliveries last month.
Despite a struggling auto market and intense competition, Chinese EV maker Nio Inc. (NYSE: NIO) posted a rise in sales for December.
The Shanghai-based company, which aspires to rival Tesla Inc. (Nasdaq: TSLA) in the home market, said in a statement Monday that it delivered 3,170 vehicles last month, up 25.4% from November. That was Nio's fifth month of shipment gains.
For the full year 2019, Nio reported 20,565 vehicle deliveries, in line with the target of over 20,300, which the company said it aimed to hit.
In December, Nio enjoyed strong demand for its ES6s, 5-passenger electric SUVs, and the ES8s, 7-seater SUVs, at a time when China's vehicle market is seeing a continuous decline. And no end to the slowdown is expected this year. The China Association of Automobile Manufacturers expects to see a 2% drop in sales to 25.3 million vehicles in 2020, as Bloomberg reported on Monday. The EV market has also slowed, weakened in mid-summer by the cut in subsidies to the sector.
(Nio posts delivery data in 2019, Source: Nio China)
The ES8 is seen by some as an economy answer to Tesla's Model X. Nio's model costs 448,000 yuan ($62,952), about half the price of a Model X in China.
This year, Nio said it plans to commence deliveries of EC6, a 5-seater electric coupe SUV.
"With our product offerings further deepened and upgraded in 2020 though the all-new ES8, the 100-kWh battery pack and the upcoming EC6, a 5-seater smart premium electric coupe SUV, we expect our order momentum to continue going forward," the company said in a statement on Monday.
Earlier, Nio posted improved financials for the third quarter. In a December report, the company said its revenue was $257 million, up 25% year-over-year on losses of $352.8 million.
On Tuesday, shares in Nio were trading at $3.41 apiece intraday, down 8%.