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NIO owners can swap out battery packs, allowing them to keep one always charged.
STR/AFP via Getty Images
Chinese electric-vehicle company NIO reported July delivery numbers and the figures sent its stock flying. That is more good news for other EV makers, too, including Tesla and Chinese peer Li Auto.
NIO (ticker: NIO) delivered 3,533 vehicles in July, up 322% year over year. The company has delivered 17,702 vehicles in 2020, up 111% year over year. Don’t forget, Chinese car sales plummeted more than 80% year over year in February as China shut its economy to slow the spread of Covid-19.
NIO stock jumped 14% Monday, bringing year-to-date gains to about 238%, crushing returns of the S&P 500 and Dow Jones Industrial Average over the same span.
Tesla (TSLA) stock rose 3.8%. NIO is worth a fraction of the EV behemoth, but Chinese EV news matters to Tesla. China is the largest market for electric vehicles in the world and growth in China is key for Tesla stock in the long run.
Monday’s news is another sign that the Chinese car market is recovering and that the country still has a strong appetite for electric vehicles.
In addition to NIO and Tesla, Li Auto (LI) stock rose 2.3% on Monday. It became a publicly traded company last week. Li makes an electric SUV that, unlike Teslas, comes with a small gasoline powered generator to recharge batteries on the fly and extend the vehicle’s range.
NIO also has a different design. Its owners can swap out battery packs, allowing them to keep one always charged. Tesla doesn’t do swapping or on-board charging, but Model S sedans can be equipped to travel 400 miles on a single charge. And Tesla has built a nationwide network of charging stations.
NIO also announced on Monday it would report quarterly earnings on Aug. 11. That event will be closely watched by EV investors.
All EV stocks have been on fire in 2020. Stock in EV makersBarron’s tracks are up more than 220% year to date, on average.
The strong performance is drawing other EV companies into public markets. Soon Fisker and Lordstown Motors will be publicly traded companies giving investors a couple more EV options. Fisker is being purchased by Spartan Energy Acquisition (SPAQ). Lordstown—which makes the electric truck Endurance—is being purchased by DiamondPeak (DPHC).
Write to Al Root at allen.root@dowjones.com