NYSE: NIO
Key Data Points
Nio (NIO +2.47%), which designs and sells electric vehicles, closed Monday’s session at $4.52, down 3.83%. The stock moved lower after January delivery data showed strong year-over-year growth but revived concerns about Chinese EV demand and sustainability of recent momentum that investors are watching closely.
Trading volume reached 66 million shares, coming in about 40% above its three-month average of 47 million shares. Nio IPO'd in 2018 and has fallen 25% since going public.
How the markets moved today
The S&P 500 (^GSPC 1.08%) added 0.54% to finish Monday at 6,976, while the Nasdaq Composite (^IXIC 1.46%) rose 0.56% to close at 23,592. Within the automotive space, peers Tesla (TSLA 2.47%) closed at $421.81 (-2.00%) and Rivian Automotive (RIVN 5.13%) finished at $14.44 (-2.10%) as investors reassessed electric-vehicle demand.
What this means for investors
Before the market opened on Monday, Nio reported its January delivery numbers. With 27,182 vehicles delivered during the month, Nio posted year-over-year growth of 96%. However, it is the sequential comparison that sent the stock sinking during the trading day. That January delivery number represented a 44% decline from December, underscoring a wider concern with the Chinese electric vehicle market.
It’s also worth noting that one particular Nio model, its ES8 SUV, accounted for approximately 84% of sales, representing concentration risk in one model vehicle.
Nio’s results were not unique and other Chinese manufacturers posted similar results. BYD’s (SEHK:1211) sales were down 30% year over year and XPeng (XPEV +5.11%) deliveries decreased 34% from the prior year.
