In This Article:
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Nio’s (NIO) March delivery numbers are a huge rebound.
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The company is also introducing two new models this year.
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With the electric vehicle maker clearly in a growth stage, NIO stock is a strong buy.
Shares of EV maker Nio (NYSE:NIO) have consistently declined since the start of the year. There was a time when the company was considered one of the top electric vehicle makers and it showed its potential in the delivery numbers month after month. NIO stock investors rode a 1,172% rise in 2020.
However, several macroeconomic factors brought that rise to a halt in January 2021 after NIO stock hit an all-time high of $62. It has been declining since then, including a 31% drop in the first three months of this year. There are concerns about the delisting of Chinese companies, supply chain issues, and the war, which has had an impact on the EV maker.
However, investors need to look beyond the temporary lows and see the bigger picture. NIO stock might be down today but it certainly has the potential to pick up. The stock can hit an all-time high this year and the current dip is a good chance to add the stock to your portfolio. Nio is in a growth stage and the company is working to make an impact on the competitive EV industry. With that in mind, let’s dig deeper into why you should hold tight to NIO stock.
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| NIO Inc. | $21.93 (to $$22.19 in April 1 after-hours trading) |
Production Numbers Are Growing
Due to the Lunar New Year holiday, several companies saw slow first-quarter growth and even Nio had downtime before its new EV launch. This may have had an impact on the January and February deliveries but we saw a solid rebound in March delivery numbers.
With a target of 25,000 to 26,000 EVs for the quarter, the company reported deliveries of 25,768 vehicles in the three months ended March 2022, increasing by 28.5% year-over-year. That included 9,985 vehicles in March alone after delivering 9,652 EVs in January and 6,131 EVs in February. Cumulative deliveries of vehicles as of March 31, 2022 reached 192,838.
Despite the supply chain issues, we have consistently seen a rise in the quarterly deliveries which is proof that consumers are enjoying NIO EVs and there is solid demand in the market. Nio ended the year with a cash balance of $8.7 billion and it expects the first-quarter revenues to be between $1.51 million to $1.56 million. It’s looking more and more like Nio will hit the projected numbers.