NIO Shares Surge Ahead of Earnings Report as XPeng Posts Impressive Q3 Results
As investors eagerly await NIO Inc.’s (NYSE:NIO) third-quarter financial results, set to be released on Wednesday, November 20, the company’s shares are trading higher in premarket Tuesday. This upward trend is likely fueled by the impressive fiscal third-quarter sales growth of 18.4% year-on-year reported by XPeng Inc (NYSE:XPEV), NIO’s top peer in the Chinese EV market.
XPeng’s Q3 Performance Exceeds Expectations
XPeng’s total revenues increased 24.5% sequentially, reaching 10.10 billion Chinese Yuan ($1.44 billion), surpassing the analyst consensus estimate of $1.38 billion. The company also expects fourth-quarter vehicle deliveries to range from 87,000 to 91,000, representing a significant 44.6%-51.3% year-on-year growth.
NIO’s Ambitious Global Expansion Plans
Meanwhile, NIO co-founder and president Qin Lihong revealed the company’s renewed plans for global expansion during the COP29 conference in Baku, Azerbaijan. Lihong shared that NIO aims to enter up to 25 countries or regions by the end of 2025, signaling a strategic shift toward more aggressive growth following a period of consolidation in existing markets.
Onvo L60 Electric Vehicle Sees Strong Demand
At the 2024 Guangzhou Auto Show, Alan Ai, president of NIO’s sub-brand Onvo, provided an update on the Onvo L60 electric vehicle. With over 7,000 units delivered, the model is experiencing strong demand. Moreover, NIO has shortened the delivery timeline for the Onvo L60 in China, with vehicles now arriving in just 10 to 14 weeks, down from the previous 12 to 16 weeks. This improvement reflects NIO’s efforts to scale production capacity and meet growing customer demand.
Aggressive Delivery Targets Ahead
Ai also outlined ambitious delivery targets, aiming to exceed 10,000 units per month in December and surpass 20,000 units per month by March 2025. With strong orders already placed for the first quarter of 2025, the Onvo L60 is proving to be a popular model, outperforming other recently launched vehicles.
Price Action
NIO shares are trading higher by 2.78% to $4.80 premarket at last check Tuesday, as investors react positively to XPeng’s impressive Q3 results and NIO’s promising global expansion plans.
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