Nio reports strong third quarter sales as it gears up for a major production boost at the end of the year

0
7

Employees stand next to an ET7 sedan at a NIO Inc. dealer in Shanghai, China, on Wednesday, June 8, 2022.

Qilai Shen | Bloomberg | Getty Images

Chinese electric vehicle maker Nio reported a $577.9 million third-quarter loss on Thursday, significantly higher than a year ago, despite strong sales after a 29% increase in auto sales.

These are the key figures from Nio’s third quarter earnings report.

  • Revenue: $1.83 billion, 32.6% more than in the third quarter of 2021.
  • Adjusted loss per share: 30 cents, compared to 6 cents per share in the same period a year ago.
  • Cash at the end of the quarter: $7.2 billion, down from $8.1 billion on June 30.
ALSO READ  'The old UK growth model is dead': what a long-term weak pound means for Britain

Shares of the company rose about 5% in premarket trading Thursday.

Nio said on Oct. 1 it delivered 31,607 vehicles in the third quarter, a 29% increase from the third quarter of 2021 and a record for the company.

Nio’s gross margin was 13.3%, slightly improving from the 13% margin it reported in the second quarter, but lower than 20.3% a year ago. Nio said the year-over-year margin decline was the result of lower sales of regulatory credits, higher costs depressing margins on its vehicles, and increased spending on its charging and service networks.

ALSO READ  Two companies have luxury trains called the 'Orient Express'. Here are the differences

CEO William Bin Li said in a statement that the company has seen strong interest in its new ET5 sedan, which he expects will “support a substantial acceleration of our overall revenue growth in the fourth quarter of 2022”. The ET5, the company’s second sedan, shipped in September.

Now that the ET5 is available, Nio is working to increase production and reduce wait times for customers, Li said. Nio said investors should expect it to ship 43,000 and 48,000 vehicles in the fourth quarter, with total sales of between RMB 17,368 million ($2.4 billion) and RMB 19,225 million ($2.7 billion).

ALSO READ  Cramer's lightning round: Enphase Energy is a buy