Nio Reports Record Deliveries Amid Price War Concerns

Record deliveries in December signal potential growth for Nio. However, concerns over a fierce EV price war in China could impact stock performance and margins in 2025.

Date: 09-01-2025

AI Rating: 6

Delivery Growth
Investors have been closely observing Nio for significant delivery growth, and the latest report reveals that December 2024 marked a new monthly high with 31,138 vehicle deliveries, representing a remarkable 73% increase year over year. In the fourth quarter, a total of 72,689 vehicles were delivered, reflecting a substantial 45% increase compared to the previous year. Given this surge, Nio is likely to witness a boost in revenue, contributing positively to its stock price.

Vehicle Margins
Interestingly, despite vehicle sales revenue declining by 4% year over year, Nio managed to increase its vehicle margin from 11% to 13%. This demonstrates Nio's capacity to maintain or improve profit margins even in challenging conditions, potentially leading to higher stock prices if sustained.

Future Prospects
Nio is excited about future growth as the company aims to double its delivery target for 2025 to about 440,000 vehicles. This ambitious sales goal, combined with new brand developments like the Onvo brand launching two new SUVs, could enhance perceived value among investors.

Cautions from the Market
However, the report also highlights significant concerns stemming from a fierce EV price war in China, which could negatively affect margins and lead to volatility in stock prices. Nio's management anticipates intensifying competition, which might impact the stock adversely until further delivery and margin performance can be established in the upcoming months.

Stocks: NIO