NIO (NIO) - Get NIO Inc. Sponsored ADR Class A Report delivered more than double the number of electric vehicles it churned out a year ago, prompting a jump in its American depositary receipts trading in New York.
The Shanghai-based electric carmaker said it delivered 5,055 vehicles in October, double its deliveries of 2,526 vehicles in the same period a year ago. The month's total deliveries consisted of 2,695 units of its ES6 model, 1,477 ES8s, and 883 EC6s.
Year-to-date deliveries as of Oct. 31, totaled 31,430 vehicles, more than double what it delivered a year ago, the company said. As of Oct. 31, cumulative deliveries of its ES8, ES6 and EC6 models reached 63,343 vehicles.
Demand for NIO's all-electric SUVs continue to attract buyers in China, even amid the coronavirus pandemic. Indeed, the electric carmaker and Tesla (TSLA) - Get Tesla Inc Report competitor has been moving closer profitability amid rising demand for its electric vehicles.
NIO in August said its second-quarter loss shrank to 1.2 billion yuan ($173 million) from 3.3 billion yuan a year earlier. On an adjusted basis, the company lost 1.1 billion yuan, or 1.08 yuan a share, vs. a loss of 3.2 billion yuan, or 3.11 yuan a share a year ago.
NIO, which went public in New York in 2018, has both cut costs and borrowed capital to keep itself operational through the pandemic. Gross margin, or revenue minus production costs, was positive for the first time in the second quarter.
Still, NIO lags far behind Tesla , whose registrations in China topped 50,000 in the first half of 2020. Tesla is also preparing to begin producing its Model Y crossover at its Shanghai plant after ramping up output of its longer-range Model 3.
J.P. Morgan analyst Nick Lai last week upgraded NIO to overweight from neutral and nearly tripled his share-price target to a Wall-Street-high of $40 from $14 on what he expects to be strong demand for new energy vehicles in China.
TheStreet's Bret Kenwell previewed how to trade NIO shares at the end of September.
Nio’s ADRs were up 13.57% at $34.74 in trading on Monday.