Sometimes good news isn't quite good enough. NIO Inc. (NIO) shares dropped Monday despite the Shanghai-based electric vehicle maker reporting solid delivery numbers for November. The market, it seems, had other ideas.
The Delivery Numbers
Nio delivered 36,275 vehicles last month, marking a 76.3% jump from the same period a year ago. That's across three brands: 18,393 from the flagship Nio brand, 11,794 from family-focused Onvo, and 6,088 from Firefly, the company's small high-end electric vehicle line.
Year-to-date deliveries now stand at 277,893 vehicles, pushing cumulative deliveries to 949,457 through November's end. Those are respectable growth figures for a company trying to compete with Tesla in the crowded EV space.
But Wait, There's Context
The stock weakness likely has more to do with last week's third-quarter earnings report. Revenue came in at $3.06 billion, falling short of the $3.26 billion analysts were expecting. The company did manage to beat on earnings though, posting losses of 15 cents per share versus estimates for 24-cent losses.
What Analysts Are Saying
Wall Street has been busy recalibrating. Barclays analyst Jiong Shao maintained an underweight rating while bumping the price target from $3 to $4. Citigroup's Jeff Chung kept a buy rating but trimmed his target from $8.60 to $6.90. Most notably, Macquarie analyst Eugene Hsiao downgraded the stock from outperform to neutral, cutting the price target from $6.70 to $5.30.
Shares were trading down 5.64% at $5.18 Monday afternoon.
