Nio’s Strong Sales Performance

In September 2024, Nio delivered 21,181 vehicles, representing a 35.4% year-over-year increase—one of the key drivers of positive investor sentiment. This figure includes 20,349 vehicles from Nio’s premium smart electric vehicle brand and 832 vehicles from its family-oriented brand, ONVO.

For the third quarter of 2024, Nio achieved a new quarterly record with 61,855 deliveries, reflecting 11.6% growth from the previous year and nearly a 5% increase from the prior quarter. This result fell within Nio’s guidance of 61,000 to 63,000 deliveries. As of September 30, 2024, the company’s cumulative deliveries reached 598,875 vehicles.

Source: Yahoo Finance

Key Drivers of the 12% Rally – New Funding

The primary catalyst behind Monday’s 12% stock surge was the Sunday announcement of a new investment.* Three major strategic investors agreed to invest a combined 3.3 billion yuan ($470.64 million) in Nio's subsidiary, Nio China.

Additionally, Nio committed to investing 10 billion yuan (approximately $1.43 billion) further to stimulate demand for newly issued shares of Nio China. This cash infusion will be executed in two installments, with 70% delivered in November and the remaining 30% by December.

Collaboration with Leading UK Startup

Nio has also partnered with Monolith, a UK-based artificial intelligence software startup, to improve electric vehicle battery packs through Nio’s battery swapping service in Europe. The key advantage of this partnership is real-time testing, allowing Nio to deploy prototypes early and continuously learn from the data.

Monolith already works with around 10 of the world’s top 20 automakers, including Mercedes-Benz, BMW, and Honda, using machine learning to accelerate battery development and help Western automakers close the gap with their Chinese counterparts.

What Does This Mean for Nio?

Nio’s recent rally has been driven by four key factors: impressive September sales, the announcement of new funding, the collaboration with Monolith, and the broader government stimulus in China, as we discussed last week.

While these positive developments have boosted the stock, the question remains whether Nio can sustain this momentum. At its current price of around $7 per share, Nio is far from its 2021 all-time high of over $60 per share.*

* Past performance is no guarantee of future results.