Nio: Battery Recall, Trade War, Auto Market Dented July Vehicle Deliveries
Chinese electric vehicle maker Nio Inc - ADR (NYSE: NIO) reported 837 vehicle deliveries July consisting of 673 ES6s and 164 ES8s.
As of July 31, aggregate deliveries of the company's ES8 and ES6 models reached 19,727 vehicles, 8,379 of which were delivered in 2019, according to Nio.
"Our deliveries in July were negatively impacted by multiple factors," William Li, founder, the chairman and CEO of Nio, said in a statement.
Nio completed a voluntary battery recall for 4,803 ES8s in July, Li said.
"During the month, we prioritized battery manufacturing capacity for this effort, which significantly affected our production and delivery results."
Some deliveries were pushed forward into June in anticipation of additional reductions to electric vehicle subsidies that occurred at the end of that month, the CEO said.
Chinese macroeconomic and auto market conditions remained "challenging," Li said, exacerbated by the Sino-American trade conflict and a year-over-year decline in passenger vehicle sales for 13 of the last 14 months.
Nio shares were down 2.88% at $3.04 in Monday's premarket session. The stock has a 52-week high of $13.80 and a 52-week low of $2.35.
Photo courtesy of Nio.
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