Forbes·2024-12-04 11:00Core Insights - Nio reported deliveries of 15,493 vehicles in November, a 29% increase year-over-year but a 2% decrease from October [1] - Total deliveries for the first 11 months reached 190,832 vehicles, reflecting a 34% year-over-year growth [1] - Nio's growth was primarily driven by its Onvo brand, which sold 5,082 vehicles in November, up 17.7% from October [1] - Nio is set to launch a new brand, Firefly, targeting lower price points to expand its market presence [1] Company Performance - Nio's stock has underperformed the broader market over the past three years, with returns of -35% in 2021, -69% in 2022, and -7% in 2023 [2] - The stock is currently trading at approximately $4.50 per share, equating to about 1x consensus 2024 revenues, which is considered low given projected revenue growth of over 20% this year and over 40% next year [2] - Nio holds a 48% market share in China's premium electric vehicle segment, with vehicle gross margins improving to 13.1% in Q3 from 11% in the previous year [2] Market Context - Nio's guidance for Q4 was weaker than expected, and competition in the Chinese EV market is intensifying [2] - The company's strategy to enter the lower-priced vehicle segment may affect average selling prices and margins, while premium EV sales have declined year-over-year [2]