Why NIO Stock is Higher Today

What happened

Shares of Chinese electric vehicle maker NIO (NYSE: NIO) were trading higher on Monday after the company said it set a new monthly record for deliveries in December. As of 10:45 a.m. EST, US shares of NIO’s custodian were up about 11.1% from Friday’s closing price.

So what

NIO said it ended 2020 on a high note, with 7,007 vehicles delivered in December, a 121% increase from a year ago and a new monthly record for the company.

That total includes 2,009 NIO flagship ES8 SUVs, 2,493 of its ES6 mid-size SUVs and 2,505 of its latest model, the EC6 sporty crossover.

NIO launched its latest model, the EC6, in September. The sporty crossover quickly became his bestseller. Image source: NIO, Inc.

Of note for auto investors: over 40% of NIO buyers in December opted for the battery-as-a-service option, which allows buyers to purchase a battery-less vehicle (at a reduced price) with a subscription to the NIO battery. exchange service. This option helps to make NIO vehicles more affordable from the start, while creating an ongoing revenue stream for the business.

NIO has more than 150 automated battery exchange stations in China. Drive-in stations can ‘recharge’ an NIO by swapping out a new battery in about 3 minutes, much less time than it would take to recharge in a charging station.

Now what

NIO has said it will unveil its next new model, a sedan, at its annual “NIO Day” event on Saturday. The company said it will also update investors and customers on the status of its standalone development program and other new technologies at the event.

NIO is expected to release its fourth quarter and full year financial results in mid-February.