NIO delivered 3,436 vehicles in the month. The deliveries consisted of 2,685 ES6s, the company’s five-seat SUV, and 751 ES8s, Nio's seven-seat SUV and its six-seat variant.
“We are pleased to see the strong monthly deliveries despite fewer working days due to the public holiday in May," Chief Financial Officer Steven Feng said in a statement.
"We expect to achieve the delivery goal for [second-quarter] 2020, while continuously improving gross margin and narrowing operating loss.”
NIO stock soared on Wednesday after Goldman Sachs analysts upgraded the stock to buy from neutral.
“The liquidity risks that were challenging Nio’s financial sustainability in 2019 have started abating,” the Goldman analysts, led by Fei Fang, wrote in a commentary.
“We estimate the company has narrowed its cash burn (i.e. negative free cash flow) to 1.6 billion renminbi [US$225 million] in first-quarter 2020 from 3.6 billion renminbi in second-quarter 2019 (post the battery incident; pre-ES6 delivery), driven primarily by the accumulation of demand strength.”
In June 2019, the Shanghai company recalled almost 5,000 ES8 electric SUVs after multiple reports of battery fires during the previous few months in China.
Also last June, NIO began the first deliveries of the ES6, a five-seat high-performance premium electric SUV.
Nio American depositary receipts at last check stood at $6.01, up 7.3%. They leaped 19% on Wednesday. The shares jumped 38% in the three months through Wednesday.