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NIO’s Chinese Sales Fell ~46% in January

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NIO’s fourth-quarter car deliveries

In January, NIO (NIO), commonly called the “Chinese Tesla,” reported better-than-expected December vehicle deliveries. In December, the company delivered ~3,318 car units to its customers—compared to 3,089 units and 1,573 units delivered in October and November, respectively. The company’s total fourth-quarter deliveries were 7,980 cars—much higher compared to its delivery guidance of 6,700–7,000 units. NIO boosted investors’ confidence in January. Now, we’ll discuss some key factors that kept the optimism alive in February.

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NIO’s sales in January

According to a recent report by insideevs, NIO sold 1,803 car units in January. The figure reflected an ~46% fall from the company’s car deliveries of 3,318 units in December.

NIO, which usually reveals its monthly sales figures on its official website, hasn’t published its January vehicle sales report as of February 28.

What could the sales mean for investors?

Investors might find ~46% month-over-month drop in NIO’s January sales in China disappointing. Apart from the seasonality factor, the ramp-up of production lines for NIO’s ES6 production could be another possible reason for the huge sales decline in ES8 sales in January. However, investors might want to wait for NIO to confirm the sales data in the coming days or during its fourth-quarter earnings event scheduled for March 5.

Read Is NIO Stock Readying for a Rally ahead of Its Q4 Results? learn what investors should expect from the company’s fourth-quarter earnings.

In February, Tesla (TSLA) started delivering the Model 3 in China. Tesla is working to increase its presence in China—the world’s largest auto market.

In the fourth quarter, NIO fell 8.7%, while Tesla stock rose 25.7%. Weak broader market sentiments in the fourth quarter took a toll on investors’ sentiments. Other automakers including General Motors (GM), Ford Motor (F), Ferrari (RACE), Toyota (TM), and Honda (HMC) fell 0.7%, 17.3%, 27.4%, 6.7%, and 12.1%, respectively, in the last quarter.

Chinese companies including Baidu (BIDU), Alibaba (BABA), Tencent Holdings (TCEHY), HUYA (HUYA), and Uxin (UXIN) fell 30.6%, 16.8%, 3.4%, 34.4%, and 28.4%, respectively, in the fourth quarter.

Correction: An earlier version of this article provided NIO’s inaccurate December sales figures and the sequential growth.

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