Shares of electric vehicle maker, Nio (NIO) have faced plenty of pressure this year.
However, it appears the EV stock has turned a corner after reporting another month of record deliveries. For May 2020, the company delivered 3,436 vehicles. That included the delivery of 2,685 ES6s and 751 ES8s. “In May, we achieved record-high monthly deliveries in our history,” William Li, founder, chairman and CEO of Nio.
That followed news April 2020 delivery numbers were also better than expected. In fact, deliveries were up to 3,155 for the month, a growth rate of 181% year over year, and 106% month over month.
And, according to Chairman and CEO, William Bin Li, “In April, we achieved record-high monthly ES6 deliveries since June 2019, and deliveries of the all-new ES8 had also been well on track. These results were mainly contributed by the recovering production and delivery capabilities. Meanwhile, we have witnessed strong order growth momentum driven by the increasing recognition of our competitive products, exceptional services, and particularly the battery swapping technologies by our existing and potential users.”
Better still, Goldman Sachs just upgrade the NIO stock to a buy rating.
All thanks to news liquidity risks “that were challenging Nio’s financial sustainability in 2019 have started abating,” said Goldman Sachs, as quoted by MarketWatch.
In addition, “likely has narrowed its cash burn thanks mostly to ‘the accumulation of demand strength,’ the Goldman analysts said. Moreover, the company’s year-to-date delivery volume, up 37% on-year between January and April, ‘has highlighted Chinese consumers’ growing recognition of this emerging auto brand.’”
Since bottoming out at $2.15 in March 2020, shares of NIO exploded to a high of $6.20. If it can maintain its record monthly deliveries, and put financial concerns to rest, the stock could potentially retest a prior high of $10.25 set in March 2019.
Ian Cooper’s Personal Position in NIO: None
5G, Streaming TV, Internet-of-things, Artificial Intelligence, Automation will skyrocket once we're beyond this pandemic and economies around the world begin to recover. Here are 10 must-own the stocks to buy now before the real recovery starts.
Pandemic, stock market crash, economic recession, social unrest, geopolitical confrontation... 2020 will go down in history as a year of upheaval.
But it could also turn out to be the most important year for technology investors.
- 5G is rolling out around the world
- new streaming TV options are going live almost monthly and are proving extremely popular with so many people in lockdown
- 26 billion internet-of-things devices will be connected by the end of 2020
- 'everything will be touched by AI' this year according to Forbes
- automation is already taking jobs and will likely take more with new 'social distancing' norms
This new report reveals exactly which stocks should take off to ride the recovery boom.