U.S. Markets open in 8 hrs 38 mins

Nio Reports Q2 Deliveries Above Guidance

Shanthi Rexaline

Nio Inc – ADR (NYSE: NIO) shares continued to see buying interest on Wednesday morning.

What Happened

The Chinese electric car company said it delivered 1,340 vehicles in June, a 23% increase from the 1,089 deliveries in May. Nio saw a month-over-month decline in deliveries in May, reflecting an inclement macroeconomic backdrop and a reduction in subsidies for electric vehicles in China.

The company said on June 18 it commenced delivery of ES6, its five-seat high-performance SUV to external users. About 413 vehicles of the make were sold in June.

For the second quarter, the company reported deliveries of 3,553 vehicles, exceeding its previous guidance for 2,800-3,200 deliveries. Deliveries totaled 3,989 in the first quarter.

Why It's Important

The numbers should offer a shot in the arm for the company, which has recently been plagued by both internal and macroeconomic issues. Domestic competition, battery fires that forced a recall of 5,000 vehicles and the Sino-U.S. trade standoff are all weighing down on the company, often known as China's Tesla Inc (NASDAQ: TSLA).

In pre-market trading Wednesday, Nio shares traded higher by 2.98% to $3.80.

Related Links:

Large Bullish Options Bets Placed On Nio

Analyst: Nio Is In A Good Spot To Take China's EV Market

Photo courtesy of Nio.

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.