Nio Shares Plunge on Wider than Expected Earnings Loss

Chinese electric vehicle manufacturer, NIO Inc. (NYSE: NIO) reported its fourth quarter financial results after market close on Tuesday. The Company topped revenue estimates, but reported wider-than-expected earnings loss, sending shares 16% lower on Wednesday morning.

For the quarter, Nio reported earnings loss of RMB 3.37 per share or USD 0.49 per share on revenue of RMB 3.43 Billion or USD 499.7 Million. FactSet analysts polled an earnings loss of USD 32 cents per share on revenue of USD 493 Million.

Total revenue increased by 133.8% quarter-over-quarter while earnings per share decreased by 69.1% quarter-over-quarter. Loss from operations increased by 106.4% year-over-year to RMB 3.44 Billion or USD 501.3 Million.

Despite the loss from operations, Nio reported that vehicle sales increased by 137% to RMB 3.38 Billion or USD 491.8 Million for the quarter. Vehicle margin was positive 3.7%, compared to negative 4.3% in the third quarter.

In the fourth quarter, Nio produced 8,069 ES8 vehicles, which increased by 91.8% compared to 4,206 in the third quarter. The Company delivered 7,980 in the quarter, increasing by 144.2% from 3,268 in the third quarter.

Nio’s ES8 is a 7-seater fully electric SUV vehicle, which began deliveries back in June 2018. The Company also launched its ES6, a 5-seater electric SUV in December.

However, Nio noted that deliveries of the ES8 in January and February 2019 were 1,805 and 811, respectively. The numbers represent a greater than anticipated slowdown in monthly deliveries compared to December 2018.

Nio said that the slowdown in the two months was resulted by accelerated deliveries made at the end of last year in anticipation of EV subsidy reductions in China. Furthermore, the Company also expected seasonal slowdowns surrounding the time of January 1st and Chinese New Years as well as macroeconomic conditions ongoing in China.

“2018 was a year of important milestones for NIO, and we are pleased to have achieved many goals that we established for the year,” said William Li, Founder, Chairman and Chief Executive Officer of NIO. “During the year, we began deliveries of the ES8, a 7-seater high-performance premium electric SUV, in June and delivered 11,348 ES8s to users in 2018; we successfully completed our initial public offering on the NYSE in September; and we launched our second production model, the ES6, a 5-seater high-performance premium electric SUV, in December.”

2 Comments
  1. Yashira M. 3 months ago
    Reply

    $NIO going down further, outlook changed. $7 bottom.

  2. Bernie Gartenlaub 3 months ago
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    Buying $NIO because China Electric Vehicles #Pollution is REAL My #investment is for the GOOD

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