China-based electric vehicle (EV) manufacturer Nio (NYSE:NIO) is making waves — and likely enemies — after reporting its second quarter of fiscal year 2021 earnings results.
In the report, Nio said its vehicle deliveries reached 21,896 during the period. This represents an increase of 111.9% year-over-year (YoY) and a 9.2% boost quarter-over-quarter (QoQ). The EV firm also said total revenues for Q2 were $1.31 million, which is 127.2% better YoY and 5.8% higher QoQ.
However, despite the earnings figures being solid, they are not the reason why NIO stock is in the news today. Rather, a few comments from Nio CEO William Li during the company’s earnings call are why the EV leader is top of mind on Wall Street today.
What did Li say? Let’s take a closer look at his words and what they mean for Nio and the EV sector overall.
NIO Stock on Watch Following CEO Comments
- During the webinar, Li made it clear that Nio is “working on a mass-market new brand that will be positioned similar to Volkswagen (OTCMKTS:VWAGY) and Toyota Motors Corp. (NYSE:TM).”
- “The relationship between Nio and our new mass-market brand will be like that of Audi-Volkswagen and Lexus-Toyota,” mentioned Li.
- According to Reuters, Nio “had stepped up preparations to make mass-market products under another brand and a ‘core team’ had been assembled as a ‘first step of a strategic initiative.’”
- Aside from this group of auto manufacturers, Li also discussed one of Nio’s direct EV competitors in his statements.
- “We want to provide better product and service at prices lower than Tesla Inc. (NASDAQ:TSLA),” he added.
- Additionally, Li also mentioned that Nio’s plans would not compete with Wuling Hong Guang Mini EV.
- That is the mini EV created by General Motors (NYSE:GM) in its joint venture with SAIC Motor.
- Also, Nio plans on releasing three new models next year — including its first sedan.
NIO stock was down about 3% as of Thursday afternoon.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nick Clarkson is a web editor at InvestorPlace.
Article printed from InvestorPlace Media, https://investorplace.com/2021/08/nio-stock-8-things-to-know-about-nios-new-plans-to-take-down-toyota/.
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