Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

NIO Scrambles to Boost Production After Sales Double Again

By John Rosevear - Dec 1, 2020 at 10:21AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

November was another record month for the Chinese electric-vehicle maker.

Chinese electric-vehicle (EV) maker NIO ( NIO 0.41% ) said on Tuesday that it's accelerating a plan to increase its production after setting a record for deliveries in November.

NIO delivered 5,291 vehicles to customers in November, more than double its year-ago result, as demand for its stylish electric SUVs continued to be strong. That total includes 1,518 deliveries of the EC6 sport crossover, the company's newest model, launched in late September.

A blue NIO EC6, a sporty upscale electric crossover SUV.

Deliveries of NIO's newest model, the EC6, doubled in November from October. Image source: NIO.

With demand continuing to grow, NIO said that it is now working to accelerate its effort to increase production. During the company's third-quarter earnings call last month, CEO William Bin Li said that the company was working with its suppliers to increase production to 7,500 vehicles per month early next year; it now hopes to have that increase in place before the end of December, it said on Tuesday.

NIO increased its production capacity from about 4,000 vehicles per month to 5,000 in September. 

Its fast-growing sales are changing minds on Wall Street. Goldman Sachs analyst Fei Fang, a longtime NIO bear, upgraded it to neutral from sell on Tuesday morning, with a price target of $59, up from just $7.70. 

Fang admitted to underestimating the benefits to NIO from its efforts to increase vehicle range, its batteries-as-a-service program, and the positive effect from China's retooled government incentives for EV buyers. 

Fang wrote that Goldman Sachs now expects EVs to account for about 20% of China's new-vehicle market in 2025, up from about 5% now. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NIO Inc. Stock Quote
NIO Inc.
$32.28 (0.41%) $0.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.