Nio Losses More Than Expected, Less Deliveries
Nio (NIO), a Chinese electric vehicle (EV) producer, posted first-quarter results that fell short of expectations on Thursday, missing sales and incurring a larger loss than analysts anticipated, sending the company’s American depositary receipts (ADRs) down in premarket trade.
The carmaker delivered 30,053 cars in the first quarter, in keeping with its downwardly revised expectations in March, which caused ADRs to fall at the time. During the first quarter of 2023, the firm delivered 31,041 automobiles.
Nio Posts Q1 Results Below Expectations
The decrease in car deliveries compared to the previous quarter was matched by a corresponding decrease in income, to 9.91 billion Chinese yuan ($1.37 billion), down 7% from last year. According to Visible Alpha’s average predictions, analysts predicted sales to remain essentially steady at CNY10.61 billion.
Nio said its revenue was hit by fewer deliveries and a lower average selling price, since enterprises in China’s EV market have continually altered pricing to compete with other local companies and overseas manufacturers like as Tesla (TSLA).
Nio also reported a CNY5.18 billion loss, which was more than 9% more than a year earlier and above analysts’ expectations of a CNY4.48 billion loss. Nio lost CNY2.57 per share, which above analysts’ expectations of CNY2.31.
Nio Q2 Deliveries, Revenue Guidance: Rosier
Nio has sold almost 36,000 automobiles in the first two months of the current quarter, outpacing the second quarter of 2023, when the company delivered 23,520 vehicles. Nio expects deliveries to more than double from last year, totaling 54,000 to 56,000 automobiles.
Nio expects sales to almost double to between CNY16.59 billion and CNY17.14 billion, up from CNY8.77 billion in the second quarter of last year.
Analysts anticipate second-quarter sales of CNY14.59 billion.
Nio’s ADRs fell 3.8% to $5.07 about an hour before the opening bell Thursday, bringing them down roughly 45% this year.
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