NIO Inc. USD OV (NIO.SI) saw its shares plummet 4.86% during intraday trading on Friday, as broader concerns about the Chinese new energy vehicle (NEV) market overshadowed positive company-specific delivery milestones.

While NIO celebrated the delivery of its 10,000th ES9 flagship SUV, achieved in just 30 days since deliveries began—a record pace for a premium pure-electric vehicle in its price segment—investors focused on industry-wide headwinds. Data indicates China's NEV retail sales have declined year-on-year for five consecutive months, with a 7.5% drop recorded in May, reflecting weak overall demand in the passenger car market.

The decline in the broader market comes despite NIO's strong individual performance, with the company delivering 37,705 vehicles in May, a record monthly high for the year. The contrast highlights investor concerns about the sustainability of growth in a contracting overall NEV market, where retail sales of traditional fuel vehicles plunged 39% year-on-year in May, even as NEV penetration rates climb.