Chinese leading electric vehicle startup NIO announced its third quarter 2019 delivery results on October 8.
The company delivered 4,799 vehicles in the third quarter, increasing 35.1% from the second quarter and exceeding the previously predicted sales range from 4,200 to 4,400 by around 500 vehicles.
The deliveries consist of 4,196 ES6 electric sport utility vehicles and 603 ES8 electric SUVs. The company delivered 2,019 vehicles in September, including 1,726 ES6s and 293 ES8s. As of September 30, the cumulative deliveries of ES6 and ES8 reached 23,689, of which 12,341 were delivered in 2019.
Due to the battery package issue, NIO recalled 4,803 ES8 in June and the ES8 sales sharply slumped to 603 in the third quarter, decreasing by 80.8% compared to the second quarter. In addition, the reduced subsidies imposed on the electric vehicle market in July also triggered negative impacts on NIO’s sales performance.
To stimulate car sales, NIO launched the free lifetime warranty and free lifetime battery changing services in the third quarter. Moreover, it also enacted discount policies against car purchases in September, such as three-year zero interest.
Ever since being listed on NYSE, NIO has been hit by several stock slumps, which saw almost 73% shaved off its share value in just one year. The company’s stock price even approached USD one after it published its second-quarter financial results in September, potentially exacerbating the firm’s financial woes.
It was no doubt that the third-quarter delivery results injected a shot in the arm for the company as the firm’s stock price increased to USD 1.72 by 11.33% accordingly on the same day when the report was released. Subject to regulations of NYSE, the listed companies will receive a warning if the stocks are constantly traded below USD one within 30 days, and will be banned from trading within 90 days.
Despite the improved sales performance, it is not sufficient for the company to gain recognition from the investment market. For investors, an enhanced gross profit margin or a new round of funding may be more convincing to support NIO’s future.