Following a sales report that demonstrated continued strong demand for Nio’s upscale electric SUVs, shares o NIO (NYSE:NIO) were trading higher on Wednesday.
NIO reported its January deliveries on Monday, and they were strong — despite new competition from Tesla’s (NASDAQ:TSLA) made-in-China Model Y.
NIO said that it delivered 7,225 of its sleek electric SUVs in January, a monthly record for the company that follows efforts to boost production amid strong demand.
At least one group of analysts following the company expects that demand to continue at least into China’s Lunar New Year holiday week.
In a new note on Tuesday, analysts at Chinese investment bank CICC said that NIO’s production appears to be at full capacity, and that the company’s “excellent user experience” and word-of-mouth marketing should ensure continued strong demand ahead of the holiday.
The company’s batteries-as-a-service program, which lowers the initial price of its vehicles, is also contributing to the growing demand for NIO’s vehicles.
To support that service, NIO said last week that it had built seven new battery-swap stations, and that it plans to open 12 more before Feb. 8, which will bring its total to 191 by the start of the holiday week.
For auto investors following NIO, the next major event will probably be the company’s report of its fourth-quarter and full-year 2020 earnings.