China's Nio Beats Electric Car Delivery Target for Third Quarter, Sees Slower October After Shut-Down

Nio ( NIO ) beat its target for third-quarter deliveries of its ES8 electric sport utility vehicle and saw output surge since it first rolled out the cars in July, while projecting slower shipments in October after a production shut-down.

The Shanghai-based car maker that listed on the New York Stock Exchange about a month ago said deliveries of its seven-seat SUV reached 3,268 in the three-month period. Year-to-date, the shipments are at 3,368, Nio said on Monday.

"We are pleased to have delivered 3,268 ES8s during our third fiscal quarter, exceeding our target of 2,900 to 3,000," Chief Financial Officer Louis Hsieh said in the statement.

The rival to companies like Tesla ( TSLA ) is focusing on China's premium battery electric vehicle market to take advantage of growth in the segment that it is targeting with the ES8 and its other planned SUV, the five-seater ES6 that it's aiming to release in June or July of next year.

Nio began delivering the ES8 in late June, sending out 100 vehicles in the last three days of the month. In July, deliveries were 381 and the pace rose to September's 1,766 monthly shipments, the company said.

"Growing our monthly deliveries from 381 in July to 1,766 in September demonstrates our steady production ramp, strong demand from users and the initial acceptance of NIO as a premium brand," said William Li, the company's founder and CEO.

Deliveries for October will be slower as the company halted output for China's National Day one week holiday and for maintenance and installation of a second production line that they plan to use to meet demand for the ES8 the upcoming ES6.

"While the planned production transition will slow our deliveries for October, it paves the way for accelerated production ramp in the future and we remain on track to achieve our delivery goal of 10,000 ES8s for the second half of 2018," Hsieh said.

Tesla has also been making inroads into the market of the world's most populous country. CEO Elon Musk visited Shanghai in July and Reuters said he reached a deal with authorities over building a plant in the city in what would be the first Tesla factory outside the US.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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