NIO's May Deliveries Rise 13% Y/Y But Is That Good Enough?

Core Insights - NIO Inc. delivered 23,231 vehicles in May, reflecting a year-over-year increase of 13.1%, but a decline from April's 23,900 units, with May's growth rate significantly lower than April's 53% increase [1][9] Delivery Performance - The NIO brand's deliveries fell 31% month-over-month to 13,270 units, raising concerns as this includes the company's core premium offerings [2][9] - ONVO, NIO's mass-market brand, delivered 6,281 units, marking a 42% increase from April, while Firefly, the smaller premium brand, delivered 3,680 units, a significant rise from just 230 in April [3][4] Brand Portfolio Management - The growth of ONVO and Firefly appears to be at the expense of the NIO brand, indicating potential challenges in managing and balancing the brand portfolio effectively [4] Sales Goals and Year-to-Date Performance - NIO aims to double its sales by 2025 from 221,970 units delivered last year, requiring a monthly average of 37,000 deliveries. However, year-to-date deliveries of 89,225 units are 34.7% higher year-over-year but still fall short of the target pace [5][9] Competitive Landscape - Li Auto delivered 40,856 units in May, a 16.7% year-over-year increase, outperforming NIO in both year-over-year and month-over-month growth [6] - XPeng Inc. delivered 33,525 units, a remarkable 230% increase year-over-year, although it saw a decline from April's 35,045 units [7] Stock Performance - NIO shares have declined approximately 19% year-to-date, contrasting with the industry's slight decline of 0.5% [8]