NIO reports weak July sales; August better but not enough
Weak volumes are blamed on a previously-announced recall that consumed most of NIO’s supply of batteries in July. Bottom-line is the newly-launched ES6 and NIO Pilot are getting good reviews but it’s unclear if that is translating to order flow. We’re assuming a 5k per month run-rate starting in September (vs 800 in July and 2,000-2,500 Aug guidance) but risks are clearly to the downside.
Digging Beneath the Surface Raises Concerns About Europe, and a Positive for China
We’ve taken a closer look at the Auto Sales data coming out of several International Markets, digging beneath the headline numbers. Our conclusions: 1) The data looks very weak for Europe (German production continues to decline; and European OEMs appear to be having difficulty making any progress towards complying with CO2 mandates); 2) However, surging luxury demand in China could produce an unexpected positive for certain OEMs & Suppliers.