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Why Nio Stock Is Higher Today

By John Rosevear – Aug 2, 2021 at 3:04PM

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Nio managed a good July deliveries total despite ongoing supply issues.

What happened

Shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) were trading higher on Monday after the company said that it successfully delivered 7,931 vehicles in July despite shortages of key parts. 

As of 2:48 p.m. EDT, Nio's American depositary shares were up about 3.2% from Friday's closing price.

So what

Nio's July deliveries total was more than double its year-ago result. But it was down slightly from June, when it managed to deliver just over 8,000 vehicles for the first time.

A bar chart showing that Nio's deliveries fell slightly in July from a record total in June.

Data source: Nio. Chart by author. The chart shows monthly deliveries for Nio's three models since production of the ES8 began in June 2018.

Like most automakers around the world, Nio has had to deal with production constraints amid an ongoing global shortage of automotive semiconductors. Nio reportedly faced an additional constraint in July: a shortage of shock absorbers, a result of flooding in Germany that affected a key supplier's factory. 

A dark blue NIO ES8, an upscale seven-passenger electric SUV.

Deliveries of Nio's flagship ES8 rose to 1,702 in July, its highest total since December 2020. Image source: Nio.

Nio's July deliveries total lagged those of key rivals Xpeng (NYSE: XPEV) and Li Auto (NASDAQ: LI), a first for the company long seen as a leader of China's emerging EV industry. But Nio investors seemed unconcerned, bidding the company's U.S.-listed shares higher on Monday.

Now what

Auto investors can expect to hear a lot more about the status of Nio's supply lines next week: The company will report its second-quarter earnings results and hold a conference call for investors next Wednesday, Aug. 11, after the U.S. markets close.

John Rosevear has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NIO Inc. The Motley Fool has a disclosure policy.

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