Nio Inc. Reports Strong Delivery Growth, Shares Rise

Shares of Nio Inc. experienced a positive start to September as the China-based electric-vehicle maker announced a significant increase in deliveries.

The stock (NIO) rose 1.8% in premarket trading, indicating a potential end to a three-day losing streak. Following a challenging month in August, the stock closed at an eight-week low of $10.27 on Thursday.

Nio reported that it delivered 19,329 vehicles in August, marking an impressive 81.0% increase compared to the 10,677 EVs delivered during the same period last year. This growth follows a doubling in deliveries in July, when Nio delivered 20,462 EVs.

In August, Nio's deliveries consisted of 12,015 sport-utility vehicles and 7,314 sedans.

Year-to-date, Nio has already delivered 94,352 vehicles, reflecting a 31.9% increase from the 71,556 EVs delivered at the same time last year.

Nio shares had experienced a significant decline of 32.9% in August, the largest monthly decline since October 2022 when it dropped 38.7%, significantly underperforming its peers and the broader market. The three-day losing streak at the end of the month followed a second-quarter report that revealed widened losses and lower-than-expected revenue.

Shares of other China-based EV makers also rallied on Friday, while Tesla Inc.'s stock (TSLA) slightly decreased.

Li Auto Inc.'s stock (LI) rose 1.9% ahead of the market opening after the company reported a remarkable 663.8% surge in August deliveries, totaling 34,914 EVs. Li Auto announced that all three models in its Li L series contributed to this success by surpassing 10,000 deliveries each.

XPeng Inc.'s shares (XPEV) increased by 3.2% as the company revealed the delivery of 13,690 EVs in August, representing a growth of 42.9% compared to the previous year's 9,578 deliveries.

These gains followed a decline of 2.7% for Li Auto's stock and a 15.0% drop for XPeng shares in August. In comparison, the iShares MSCI China ETF (MCHI) experienced a 9.8% decline, while the S&P 500 index (SPX) eased by 1.8%.

Also read: Tesla, Nikola, Nio shares decline as the EV sector faces widespread weakness.

Meanwhile, Tesla, which generated 23% of its total second-quarter revenue from China, saw its stock (TSLA) decline by 0.4% in premarket trading after a decrease of 3.5% in August. The company reduced prices on its Model S and Model X EVs in China on Friday as part of an effort to boost sales, following a price reduction two weeks earlier.