NIO Stock Rises after February Delivery Update

  • NIO (NYSE:NIO) stock is trading sharply higher in today’s trade. Along with a spike in broader markets, the company’s February delivery update seems to be helping today’s price action.
  • Meanwhile, the stock is trading with a year-to-date loss. Tesla (NASDAQ:TSLA) has risen sharply this year despite this month’s sell-off.

NIO stock

NIO stock is trading higher today. Tesla stock is also in the green. Both of the stocks fell on Monday when the Dow Jones plunged. Electric vehicle makers’ stock prices bore the brunt as oil prices fell to multiyear lows. Generally, lower oil prices are negative for electric vehicle sales.

February delivery update

Today, NIO provided its February delivery update. The company delivered 707 electric vehicles in February—a fall of 12.8% year-over-year. If the numbers look bad, consider the fact that China’s passenger car sales fell almost 80% in the month! NIO’s February deliveries look decent considering the slump in China’s car sales last month. Now, NIO has delivered 2,305 electric cars in 2020, while its cumulative deliveries are 34,218. The rise in broader markets and a decent February delivery report helped NIO stock today.

William Bin Li, NIO’s CEO, said, “Deliveries have been constrained as services are being cautiously reopened and people are encouraged to avoid unnecessary close-range contact. In addition, the production has started ramping up gradually from the middle of February and supply chains have remained challenging.”

Tesla

Meanwhile, Tesla hit another milestone. The company has produced 1 million cars in aggregate. CEO Elon Musk, who was criticized for his tweet about the coronavirus, tweeted about the feat. Tesla expects to ship more than half a million cars this year. The company’s shipments have been rising sharply.

In contrast, NIO is fighting for its survival. The company has raised capital in multiple rounds of convertible bond issues this year. NIO stock fell after it announced the fundraise. Tesla stock rose after it announced a $2 billion share issue last month.

We’ll get more updates on NIO when it reports its fourth-quarter earnings on March 18. In an upcoming series, I’ll discuss what analysts expect for NIO’s fourth-quarter earnings. To learn more, read NIO and Tesla Stock React Differently to Capital Raise.