NIOtime #1 | Stock Dilution, August Delivery, Analyst Rating Upgrade
Technical, media and community news from NIO app. This week highlights stock chart update, August vehicle delivery, stock dilution and many exciting development news spotted on NIO APP.
Technical Chart
From the chart, NIO closed the week at US$ 17.69 and hit all time high at US$21.05 on Wednesday anticipating good news on August delivery. Despite good news reported 3965 vehicles delivered in August, NIO couldn’t stay at the all time high level and dropped 16% following the long waited market correction on Thursday and Friday. For technical analysis, NIO’s EMA 21 (US$16.69) is a strong support while short term resistance is its previous high (US$21.05). Anything below EMA 21 level would be good buying dip opportunities for NIO long term investors. There is high likely that NIO would perform sideways next week and may attempt to hit the resistance point unless there are surprising news announced from NIO. The current market sentimental is accumulating with fear emotion as VIX index top around USD$30 zone. However, we do see this market correction as good pullback and testing to fundamentally good companies. So don’t panic selling and hold for long term if you have strong conviction on the stock you own.
Highlights
US$1.73B ADS Offer Completion Within 3 Days
US$235M Convertible Notes Redeemable at 5 Sept
August Delivery Number at 3965 vehicles
Credit Suisse Analyst Rating Upgrade to US$25.00
20kW At Home Fast Chargers First Debut On Sale
NIO built 146 Battery Swap Station & 53 Super Charger Point So Far
NIO Second Generation-Higher Efficiency Lower Cost Faster Deployment Battery Swap Station To Be Deployed Next Year
News
US$1.73B ADS Offer Completion Within 3 Days
NIO announced the pricing of the offering of 101,775,000 American depositary shares (the “ADSs”), each representing one Class A ordinary share of the Company (the “ADS Offering”), at a price of US$17.00 per ADS on 8/31/2020. The completion of the offering of 101,775,000 ADS are done on 9/2/2020 at a price of US$17.00. This latest ADS offer bagged US$1.73B for NIO to repurchase shares in NIO China as well as R&D development in autonomous driving technology. (Source: NIO Investor Relation Webpage)
US$235M Convertible Notes Redeemable at 5 Sept
The US$235 million convertible notes that has issued to the Purchasers (several unaffiliated Asia-based investment funds) on March 5, 2020 which bear zero interest will mature on March 5, 2021. Prior to maturity, holders of the notes have the right to convert either all or part of the principal amount of the notes into Class A ordinary shares (or ADSs) of the Company from September 5, 2020, at a conversion price of US$3.50 per ADS, subject to certain adjustments. (Source: NIO Investor Relation Webpage)
August Delivery Number at 3965 vehicles
NIO delivered 3,965 vehicles in August 2020, representing a strong 104.1% year-over-year growth. The deliveries consisted of 2,840 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 1,125 ES8s, the Company’s 6-seater and 7-seater flagship premium smart electric SUV. As of August 31, 2020, cumulative deliveries of the ES8 and the ES6 reached 53,580 vehicles, of which 21,667 were delivered in 2020. (Source: NIO APP)
Credit Suisse Analyst Rating Upgrade to US$25.00
Credit Suisse analyst Bin Wang raised the firm's price target on NIO Inc. US$25 from US$17.50, a new Street-high. The analyst notes that NIO's August delivery volume hit a record high of 3,965 units, up 104% year-over-year/12% month-over-month, close to its current maximum capacity of monthly 4000 units. NIO guided its capacity will increase to 5,000 units in September and guided its monthly new orders to hit record high in August-above 5000 units, he estimates. Wang attributes the higher new order flow to some front-loading demand before the discontinuation of unlimited free battery swap. (Source: TheFly)
NIO APP Community
20kW At Home Fast Chargers First Debut On Sale
Chinese EV maker NIO announced the availability of its 20kW home charging pile, which is comparable to a small "fast charger" that can greatly reduce cars owners' charging time at home earlier this week. (Source: NIO APP)
NIO built 146 Battery Swap Station & 53 Super Charger Point So Far
The latest update from NIO APP on the statistics of battery swap station and super charger point in the country has reached 146 battery swap stations and 53 super charger points. The 146th battery swap station and 53rd super charger point are built early September in Taizhou. (Source: NIO APP)
NIO Second Generation-Higher Efficiency Lower Cost Faster Deployment Battery Swap Station To Be Deployed Next Year
On September 5, 2020 China Automotive Industry Development International Forum (TEDA) was held in Tianjin. During the summit discussion, Li Bin, the founder and chairman of NIO Auto, commented that supercharge method should think as a complementary solution with battery swap method and not be opposed to another. Until now, NIO's battery swap service has accumulated more than 800,000 times, and a battery swap station created a record of 96 exchanges on a single day at most. In addition, Li Bin added that "NIO is now developing the second generation of battery swap station, its efficiency is much higher than the first generation. "Li Bin frankly said, "the current cost of first generation station is indeed a little higher, thus we are now focusing on further cost reduction in order to accelerate the deployment of the second generation of battery swap station at higher efficiency, lower cost and faster deployment starting earlier next year." (Source: evlook.com)
Summary
Despite a decent pullback on NIO stock price this week, we strongly believe that NIO is on the right track to position itself as a high premium EV leader and a high quality user enterprise that creates unstoppable network effect around its NIO APP. We have observed from the NIO APP, it has very high community engagement among car owners and potential car owners. There are a lot of interesting story sharing from the proud owners themselves as well as development progress announced from the NIO team.
At last, we would end here with quote we like from Li Bin during the TEDA forum.
From the current point of view, to make an inappropriate analogy, NIO is best equivalent to basically return to normal work from the ward. Now, the user's confidence and recognition of NIO is increasing, and why NIO’s car can be recognized by users, in addition to the competitiveness of the product, it’s because so many years, we have done a lot of investment around the user's pain points to develop a comprehensive whole charging scenario investment from the user’s point of view." Li Bin said confidently, "NIO’s energy 'arsenal' is the most comprehensive, 70% of users can install home charger as NIO just released a 20 kW at home fast charger, which is not that high for the grid requirements, 380 volts is enough, charging 20 degrees an hour, the cost is very appropriate, and now many users also particularly like it, the next step is to make a lot of investment in destination charging."
It’s NIO time, Blue Sky Coming. Cheers all and have a wonderful Labor Day long weekend!
** One of our goals for this newsletter is to dig and cover untold stories from NIO APP and to bridge the information gap between NIO investors and NIO APP community. We do hope one day NIO APP will open globally in many languages. If you find this useful, please do share, subscribe and engage with NIOtime.