Connect with us

Hi, what are you looking for?


Nio Just Cut Delivery Estimates. Is It Time to Sell the Stock?

American depositary shares of Chinese electric vehicle (EV) maker Nio (NIO -2.30%) plunged as much as 7% Wednesday morning after the company lowered first-quarter delivery estimates.

Nio had previously told investors it expected to ship as many as 33,000 vehicles in the quarterly period. Now it sees only about 30,000 units to be delivered. That news added to the pessimism investors have already felt regarding Nio’s prospects. Nio shares are now down about 50% just this year.

Is the electric vehicle market already saturated?

China is the world’s largest EV market. Even as Nio expands into Europe, it is relying on its home market to continue growing quickly. Last year, almost 9 million battery-electric vehicles were sold in China, the U.S. and Europe combined. More than two-thirds of those were in China. But the rate of growth has been slowing and automakers are slashing prices to try to continue supporting growth.

With many early adopters already having purchased vehicles, a slowdown in growth has been evident in 2024. Nio’s monthly unit volume sales have dropped noticeably since peaking last July.

Investors need to decide whether they believe the slowing growth trend is just temporary, or whether a long-term pivot to electrify transportation is coming. Citigroup analyst Jeff Chung still sees about 27% of new car sales in China being all-electric in 2024. In the U.S. penetration is much lower so far, with only about 8% of car sales being fully electric.

For those who believe the runway for adoption remains long, investing in Nio and other EV makers could make sense. But the risk of being wrong should also play a role in how much you want to risk in a still-evolving new market.

This post appeared first on

You May Also Like


Newmont (NYSE: NEM) reported mixed financial results even as the price of gold approached its all-time high. In all, the company’s earnings per share...


Fisker (NYSE: FSR) stock price has been one of the best-performing electric vehicle (EV) stocks this week even as Tesla slumped. The shares jumped...


The Fox Corporation (NASDAQ: FOX) stock price has been under pressure as investors come to terms with the abrupt firing of Tucker Carlson. The...


NatWest (LON: NWG) share price rose sharply, helped by the strong results from Barclays. The stock jumped to a high of 274.8p, which was...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the-company.

Copyright © 2024