NIO Inc. (NYSE:NIO) saw a surge in its stock price during Friday's premarket trading, driven by positive news surrounding the company's growing production capacity and international expansion efforts.
At the 2024 Guangzhou Auto Show on November 14, Alan Ai, President of NIO's sub-brand Onvo, shared updates about the Onvo L60 electric vehicle. According to Ai, more than 7,000 units of the L60 have been delivered to customers, signaling strong demand for the model, reported CnEV Post.
Recent reports indicate that NIO has managed to shorten the delivery timeline for the Onvo L60. Customers in China can now expect their vehicles to arrive in just 10 to 14 weeks, down from the previous 12 to 16 weeks. This reduction in wait times suggests that NIO has successfully ramped up its production capacity to meet the growing demand for its vehicles. The change was confirmed through updates on the Onvo app, further reinforcing the idea that the company is scaling its operations.
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Ai also outlined ambitious targets for future deliveries, stating that Onvo aims to exceed 10,000 units per month in December and reach more than 20,000 units per month by March 2025. The Onvo L60 has already seen strong order volumes, far outpacing the demand for other models launched at the same time. As a result, production orders for the first quarter of 2025 are already in place, further demonstrating the model's popularity.
In addition to its domestic growth, NIO is expanding its footprint internationally. The company revealed plans to enter the Azerbaijani automotive market, a move that reflects its broader strategy of global expansion, CnEV Post reports. Qin Lihong, NIO's co-founder and president, shared the news in a WeChat video, confirming that he is currently visiting Baku, the capital of Azerbaijan, as part of the company's efforts to grow its presence beyond China.
With strong sales figures, ramped-up production capabilities, and an expanding international footprint, NIO appears to be well-positioned for continued growth in the global electric vehicle market.
Price Action: Nio shares traded higher by 1.35% at $4.49 premarket at the last check Friday.
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