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NIO stock rallies after May deliveries return to growth as production gradually recovers

Shares of NIO Inc. NIO, +4.95% rallied 1.5% in premarket trading Wednesday, after the China-based electric vehicle maker reported a 4.7% increase in May deliveries, to 7,024 vehicles from 6,711 a year ago. That followed a 28.6% year-over-year decline in April. NIO said deliveries in May were still constrained by COVID-19-related lockdowns, but vehicle production had been “gradually” recovering. “NIO plans to further ramp up the production capacity to a higher level by working closely with supply chain partners and to accelerate the delivery recovery starting from June, in light of the recent supportive developments in the COVID-19 situation and the strong order inflow,” the company said in a statement. The May deliveries consisted of 5,317 premium premium SUVs, and 1,707 ET7 sedans. NIO’s stock has tumbled 45.1% year to date through Tuesday, while the Invesco Golden Dragon China ETF PGJ, +3.97% has shed 22.4% and the S&P 500 SPX, -0.63% has dropped 13.3%.

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