Although Nio’s third-quarter losses shrank, the company’s sales estimate fell short of market estimates on Tuesday.
Based on LSEG consensus estimates, Nio performed as follows in the third quarter:
Revenue: 19.1 billion Chinese Yuan ($2.7 billion), as opposed to the 19.4 billion that was anticipated.
Loss per share: 2.67 yuan in actual loss per share as opposed to 2.91 yuan projected. The loss of 3.7 yuan per share in the second quarter of the year was greater than that.
Annual revenue increased by 47%.
Nio shares reversed previous losses that accompanied the findings, closing almost 4% higher in pre-market activity in the U.S.
As it plots a course for profitability, investors’ attention is focused on the Chinese electric carmaker’s capacity for more restrained expenditure.
William Li, the CEO of Nio, restated the company’s emphasis on efficiency.
“We’ve found ways to streamline our operations, cut expenses, and improve productivity,” Li stated on Tuesday.
There are already some results from some of those efforts. Nio recorded a third-quarter net loss of 4.6 billion yuan, which was greater than the same period in 2022 but down 24.8% from the second quarter of 2023.
Last month, the business also let go of 10% of its staff, citing “fierce competition.”
China’s electric car market is fiercely competitive, and heavyweights like Tesla and BYD as well as up-and-coming companies like Xpeng and Li Auto are putting pressure on Nio.
Furthermore, Nio’s goal to target the premium part of the local EV market may be hindered by the fact that Chinese consumers are still frugal with their money.
The business predicted that fourth-quarter revenue would range from 16.1 billion to 16.7 billion yuan, or a 0.1% to 4.0% increase from the previous year. For the December quarter, analysts projected 22.4 billion yuan.
In the fourth quarter, Nio also expects to deliver between 47,000 and 49,000 vehicles, representing an increase of between 17.3% to 22.3% year over year.
Source (CNBC)
