Nio, the Chinese electric vehicle (EV) pioneer, experienced a meteoric rise in its shares on the Hong Kong stock exchange, fueled by optimistic projections regarding its delivery performance for the month of May. Investors witnessed a remarkable surge of 10% in Nio’s share price, reaching 42.10 Hong Kong dollars (equivalent to approximately US$5.38).
Analysts, buoyed by promising indicators, foresaw Nio surpassing its previous monthly delivery record, with expectations exceeding 20,000 vehicle units for May. This anticipated achievement would mark a significant milestone for the Shanghai-based EV manufacturer, as its highest monthly sales figure to date stood at 20,462 units, achieved in July of the prior year.
The driving force behind this surge in sales can be attributed to Nio’s strategic pricing initiatives, including ongoing discounts on both vehicle prices and battery-related services. Notably, the decision to slash monthly fees for its Battery as a Service (BaaS) battery-rental program in March proved instrumental in stimulating customer demand and driving order volumes.
Building on the momentum from April, during which Nio recorded a remarkable doubling of deliveries to 15,620 units compared to the corresponding period the previous year, market sentiment remained bullish. This surge in April marked Nio’s fastest growth rate since October 2022, further reinforcing investor confidence in the company’s growth trajectory. Bolstering this optimism, Nio has set ambitious annual sales targets ranging between 180,000 and 200,000 units for the fiscal year 2024.
The positive outlook for Nio’s performance also had a ripple effect on the broader electric vehicle sector in Hong Kong. Competitors like XPeng and Li Auto experienced notable increases in their stock values, with XPeng witnessing a 4.7% surge and Li Auto registering a 3.3% uptick.
China’s unwavering commitment to fostering the adoption of electric vehicles has provided a conducive environment for companies like Nio to thrive. The recent unveiling of a comprehensive decarbonization action plan by the state council, which includes progressive removals of barriers to new-energy car purchases, underscores the government’s steadfast support for the growth and development of the EV sector.