Electric vehicle manufacturer Nio achieved impressive results in March 2024, delivering a total of 11,866 vehicles, reflecting a 14.3% increase compared to the previous year. The company's SUVs accounted for 6,737 deliveries, while sedans contributed 5,129 units to the total.

This marked a significant rebound for Nio in SUV sales, following a decline in the past months. The company witnessed a peak in SUV deliveries in July 2023 with 14,066 units, which had subsequently seen a consecutive decline. However, the introduction of the upgraded 2024 versions of its SUVs including the ES8, ES6, EC7, and EC6 in March, drove up customer demand and contributed to the surge in deliveries.

Nio's momentum is expected to continue, leading to a sustained rebound in SUV sales throughout April. This positive outlook is supported by increased weekly orders in the second half of March, following enhancements made to Nio's Battery as a Service (BaaS) program.

Morgan Stanley analyst Tim Hsiao reiterated an Overweight rating and a $10.00 price target for Nio, citing the encouraging increase in weekly orders and the potential of the BaaS program. This price target indicates an upside potential of over 115% based on Monday's closing price of $4.64 per share.

In the first quarter of 2024, Nio delivered a total of 30,053 vehicles, achieving its guidance despite a slight adjustment from the initial forecast of 31,000-33,000 units down to 30,000 units. Although the figures for the first quarter were slightly lower than the 31,041 units delivered in the same period last year, Nio remains optimistic about future growth.

March marked the commencement of deliveries for Nio's 2024 models, including the ES8, ES6, EC7, EC6, and ET5 Touring. These models boast upgraded configurations and improved performance, most notably highlighted by the enhanced Center Computing Cluster, which significantly bolsters computing power and enhances the competitive edge of Nio's products.

Looking ahead, Nio plans to initiate deliveries of the 2024 ES7 (EL7), ET7, and ET5 models in the second quarter of 2024, further expanding its product lineup and catering to the demands of a growing customer base.

Overall, Nio's strong March delivery numbers, coupled with positive analyst sentiment and the introduction of upgraded models, bode well for the company's growth prospects. The sustained rebound in SUV sales, along with upcoming launches, point to a promising future for Nio in the electric vehicle market.