US-listed shares of the EV manufacturer Nio surged on early Tuesday by over 7% extending the rebound that began in July.
The rally sent Nio shares to a new 21-month record high since the final days of 2023.
The stock soared to $7.78 in the first hour of the trading session, mirroring the Hong Kong gains earlier in the day.
There, the stock jumped 3% closing at HK$57.40.
The surge comes hours after a key executive of the Nio Group teased on Tuesday that its three brands received above 10,000 orders last week.
According to Nio‘s Assistant Vice President of Brand and Communication Ma Lin, 10,000 orders “seems a little bit lacking.”
Additionally, the group reached a new all time record in weekly sales last week, data release earlier this Tuesday showed.
The Nio Group sold 10,800 vehicles between September 22 and 28, a 61.2% surge from the previous week’s 6,700 units.
The EV stock had reached a five year low last April at $3.02.
Since then, the shares have more than doubled as investors and Wall Street reacted to increasing sales and hope the highly anticipated profitability quarter can be reached in Q4.
Nio‘s stock has more than doubled in the past three months, encouraged by strong demand for its recently launched three-row Onvo L90 and a monthly deliveries record in August.
Despite a slight drop following the announcement of an equity offering earlier this month, through which the company has raised $1.16 billion, the shares have rebounded as Wall Street analysts reacted to the offering.
The Shanghai-headquartered EV maker said the offering will help strengthen its balance sheet while continuing to invest in its products and battery swapping technology.
Goldman Sachs expects the new capital to lower Nio‘s debt ratio from 98% to 92% and projects the company’s R&D spending will reach 11 billion yuan ($1.4 billion) in both 2025 and 2026.
The company founded and led by William Li aims to reach its first profitable quarter in Q4 as it sharply increases sales, while slashing investments, fixed costs, and R&D.
The Shanghai-based company is focusing on ramping up production of both its most recent large SUVs — the Onvo L90 and the third-gen Nio ES8.
Production for Nio Group’s three brands — its premium brand, Onvo, and Firefly — is currently underway at its two factories in Hefei.
According to a local media report last week, the EV maker has also quietly begun production at its third factory in China’s Anhui Province.
The plant was planned to begin production in September, the management said earlier this year.
The rally on Nio shares began in July when the company unveiled the second model under the Onvo brand with a much lower than expected pre-sale price.
Later that month, the official starting price was further cut making it one of the most competitive models the EV maker ever launched.
Nio has sold out this year’s 40,000-unit production capacity for the newly launched ES8 SUV in just 9 minutes.
New orders placed from last week facing a waiting time of between 24 and 26 weeks — equivalent to a 6-month period.
The company said earlier this week that it will use 100kWh battery packs to accelerate deliveries of its newly launched third-gen ES8, a move that will temporarily constrain supply at its battery swap stations.
The Group’s management set a 150,000 deliveries target for its three brands — Nio, Onvo and Firefly — in the fourth quarter.
Based on the third quarter guidance provided in the latest earnings report, the company expects to deliver between 34,678—38,678 EVs in September — as it set its quarterly guidance to be between 87,000 and 91,000 vehicles.
Considering weekly registration data shared over the past weeks, Nio has sold 29,910 vehicles in China from September 1 to September 28.
The last two days of the month have not been disclosed yet, neither have sales overseas. Nio is expected to report its monthly sales on Wednesday (October 1).
