NIO stock rallies after May deliveries return to growth as production gradually recovers

Shares of NIO Inc.
NIO,
+5.55%
rallied 1.5% in premarket trading Wednesday, after the China-based electric vehicle maker reported a 4.7% increase in May deliveries, to 7,024 vehicles from 6,711 a year ago. That followed a 28.6% year-over-year decline in April. NIO said deliveries in May were still constrained by COVID-19-related lockdowns, but vehicle production had been “gradually” recovering. “NIO plans to further ramp up the production capacity to a higher level by working closely with supply chain partners and to accelerate the delivery recovery starting from June, in light of the recent supportive developments in the COVID-19 situation and the strong order inflow,” the company said in a statement. The May deliveries consisted of 5,317 premium premium SUVs, and 1,707 ET7 sedans. NIO’s stock has tumbled 45.1% year to date through Tuesday, while the Invesco Golden Dragon China ETF
PGJ,
-0.75%
has shed 22.4% and the S&P 500
SPX,
-0.69%
has dropped 13.3%.