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Nio shares pop despite earnings, outlook miss

Published 05/12/2023, 10:56
Updated 05/12/2023, 10:56
© Reuters

Shares in the electric vehicle (EV) maker Nio (NYSE:NIO) were up more than 3% in early New York trading on Tuesday after the company reported its third-quarter results.

Stock gains occurred despite Nio saying it generated revenue of 19.07 billion yuan in the third quarter, missing the consensus by 300 million yuan. Nio posted an adjusted loss per share of 2.67 yuan, again weaker than the consensus for a loss per share of 2.53 yuan.

Gross margin was reported at 8%, down from 13.3% year-on-year and missing the estimate of 8.2%. The vehicle margin was 11%, above the expected 10.2%, which is attributed to the elevated average selling price, ongoing vehicle cost reduction and economies of scale.

“We have recently completed a thorough review of the Company’s two-year operating plans to determine our objectives, priorities, and action plans,” said William Bin Li, founder, chairman and chief executive officer of NIO.

“Meanwhile, we have identified opportunities to optimize our organization, reduce costs and enhance efficiency. Our focus remains on advancing core technologies, developing key products, and expanding sales and service capabilities. We are confident in NIO's long-term competitiveness in the smart electric vehicle market.”

For this quarter, Nio expects to generate sales between 16.08 billion yuan and 16.70 billion yuan, a huge miss compared to the consensus of 21.35 billion yuan.

Fourth-quarter deliveries are seen at 48,000 (up or down 1,000), while analysts were looking for 59,426 deliveries. In Q3, Nio delivered 55,432 vehicles.

Nio stock is down nearly 25% since the start of the year.

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