NIO Stock Alert: Nio Deliveries to Nearly Double in June 2024

Nio (NYSE:NIO) shares rose 4% over the weekend after announcing that auto deliveries in June were double the year-earlier level.

Nio delivered 21,209 cars during the month, its second consecutive record. Quarterly deliveries of 57,373 also exceeded previous forecast.

Over the weekend, NIO’s gains made up most of its trading loss on June 28. The Chinese electric vehicle (EV) maker opened at $4.33 per share and had a market capitalization of around $9.4 billion. Other Chinese EV makers traded in New York also posted gains, including XPeng (NASDAQ:XPEV), Li Car (NASDAQ:LI) And Polar Star (NASDAQ:PSNY).

NIO stock is down nearly 50% in 2024 and nearly 60% over the past year. It traded for over $15 per share last August. Its all-time high is nearly $60 per share, reached in early 2021.

Rise of Nio or fall of Nio?

InvestorPlace’s Louis Navellier insists that nothing significant has changed in Nio’s performance and that the stock remains in the “penny stock” range.”

The bigger news at Nio concerns the upcoming small car called “Firefly”. CEO William Li confirmed that the new car will not be able to use Nio’s current “battery swap” stations. Instead, it will use smaller, simpler swap stations with coffee bars. This is due to the smaller wheelbase. The price of the new car will be between $14,000 and $28,000.

A third Nio brand, Onvo, can only use the fourth-generation Nio swap stations that opened in June.

Nio is also facing a new 21% tariff in Europe. This has led the company to launch Firefly in China first and then export it to Europe. At the beginning of the year, Nio had planned a major export offensive for this year due to competition in its home market.

Nio sold 20 percent of its company to Abu Dhabi’s public investment fund late last year. Its technology will be integrated into a new British-Emirati luxury EV startup called Forseven.

NIO shares: What’s next?

Nio remains the canary in the coal mine for China’s electric car export offensive. And the canary is not looking good.

At the time of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com policies. Publishing guidelines.

At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.