NIO's all-time high for deliveries could indicate a revival of the broader Chinese EV market.
Investors and automotive suppliers are watching electric vehicle maker NIO — China’s domestic answer to market leader Tesla — closely, looking for signals about the health of China’s overall EV industry.
In its recent Q1 earnings call, NIO reported narrowing operating losses and an expected all-time high in vehicle deliveries in Q2. Separately, the company announced that it hit record deliveries in May.
This is a turnaround from late 2019, when NIO faced the dual crises of the Covid-19 pandemic and dire liquidity problems. Now, following Chinese government subsidies for the EV market, the outlook for NIO — and for the broader EV space — is brighter than it was even a month ago.