NIO seems to have regained their rhythm after being on the brink early in the year. Thanks to government support and a new model, the electric vehicle startup shrugged off the COVID-19 pandemic fever to set a company record for deliveries and revenue during Q2 2020. The company’s rebound has been attributed to strong automotive sales in China, an updated version of its first electric SUV, and a recent government support of up to $1 billion.
The COVID-19 pandemic undoubtedly shook industries across the globe, with even frontrunners, like Byton, feeling the heat of the crisis. However, competition seems to be back and hotter in China, especially with the automotive market rebounding in the country. There is also renewed optimism about the potential of electric vehicle startups in China before the likes of GM, Volkswagen, and Ford start to ship dozens of their EVs.
At the time of this report, NIO sells three EVs – the ES6, which is a smaller SUV valued at around $52,000, and the revamped version of the ES8, a larger SUV selling for about $67,000, and the EC6.
The ES6 has done well in the market since making its debut in mid-2019, with an increasing number of monthly deliveries. However, things changed a bit in Q2 2020, with NIO shipping just over 2,900 ES6 SUVs in April, 2,685 in May, and 2,476 in June. While the numbers trended downwards, the period remained the best three-month run for either of NIO’s vehicles, edging out ES8 sales in Q4 2018. The company also shipped over 2,600 ES6 SUVs in July, reiterating the fact that NIO may be back on the rise.
The ES8 on the other hand has literally been on life support, with NIO recalling nearly 5,000 of them in June 2019 due to a design flaw in the battery pack. However, the revamped version offers improvements in different aspects, including the interior, range, and performance, boosting delivering from just 36 in February and 54 in March to 248, 751, and 1,264 in April, May, and June. Consequently, the startup generated over $526 million in revenue across Q2 2020, a record for the six-year-old startup. NIO can eventually boast of generating a positive gross margin on its vehicles while growing its cash pile to about $1.6 billion.
For more information about NIO’s market performance and updates in the global EV market, please visit – https://cedargrove-investments.com/.
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