NIO Inc. (NYSE: NIO) saw its U.S.-listed shares gain ground in pre-market trading on Tuesday, building on Monday's 6.79% rally after the company reported a sharp jump in May vehicle deliveries. The stock closed at $5.98 and was indicated around $6.19 in early trading, signaling continued investor optimism as the electric vehicle maker works to prove its growth trajectory in China's competitive market.
The Shanghai-based automaker delivered 37,705 vehicles in May, a 62.3% increase year-over-year, surpassing both XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) in monthly volume. The total comprised 20,013 vehicles under the NIO brand, 12,029 from its ONVO line, and 5,663 from the FIREFLY sub-brand. Year-to-date deliveries reached 150,526, up 68.7% from the same period last year, with cumulative deliveries surpassing 1.14 million as of May 31.
June Deliveries Under the Microscope
With 67,061 vehicles delivered in April and May combined, NIO must now deliver between 42,939 and 47,939 units in June to meet its second-quarter guidance of 110,000 to 115,000 vehicles. The company's forecast implies year-over-year growth of 52.7% to 59.6%, as stated by founder and CEO William Bin Li. Investors are viewing June as the critical test of whether demand is sustainable or merely a product-launch bump.
New models are driving the narrative. NIO launched the ONVO L80, a five-seat sport-utility vehicle, on May 15, with deliveries commencing the following day. The company also highlighted that its all-new ES8 has ranked first for five consecutive months among vehicles priced above 400,000 yuan across all powertrain types, including gasoline, hybrid, and electric.
Financial Health Improves
NIO's first-quarter financial results provide a stronger foundation than a year ago. Revenue came in at 25.53 billion yuan ($3.70 billion), with vehicle margin reaching 18.8%. The company also reported a non-GAAP adjusted operating profit of 66.8 million yuan. CFO Stanley Yu Qu noted that the company had "maintained positive non-GAAP operating profit" and that cash reserves continued to grow.
The broader EV landscape remains mixed. XPeng delivered 32,158 vehicles in May, up 4% from April, while Li Auto delivered 33,350 vehicles and pointed to new model launches in June. While NIO's May volume outpaced both, each company operates in different price segments. Li recently described China's auto market as "saturated" rather than a growth market, even as exports remain strong.
Analyst Views and Risks
Deutsche Bank analyst Wang Bin noted that ONVO L80 sales could reach around 10,000 units per month in the near term after production ramps, before settling closer to 4,000 as competitors respond. The risk remains that investors are pricing in success before June delivery data confirms it. A weaker June, increased discounting by rivals, battery-cost pressures, or softer consumer demand could erode the margin progress that has helped reset sentiment.
For now, NIO has turned a single monthly delivery report into a stock catalyst. The next report will need to demonstrate that May's performance was not just a one-time boost from new product launches but the beginning of a sustained recovery.
