Nio’s Third-Quarter Revenue Proves Promising for Upcoming Year-End Production

Date:

Share post:

Nio, a Chinese electric-vehicle company that listed on the New York Stock Exchange this month, announced today that its third-quarter revenue beat market expectations and that it expects to finish out 2018 with strong production numbers as well. The company’s shares rose by more than 6% in early trading today, following the news from the closely watched firm. We are pleased with our Q3 results, which exceeded our expectations in several areas, founder and CEO William Li said in the press release announcing the third-quarter results.

Despite good revenue following a 29% growth in car sales, Chinese electric vehicle manufacturer Nio on Thursday recorded a loss of $577.9 million for the third quarter, much greater than a year earlier.

The major figures from Nio’s third-quarter earnings report are listed below.

Revenue increased by 32.6% to $1.83 billion from the third quarter of 2021.
Compared to the same time last year, the adjusted loss per share was 30 cents as opposed to 6 cents.
Cash was $7.2 billion at the end of the quarter, down from $8.1 billion on June 30.

On Thursday, the price of the company’s shares rose by nearly 11%.

Nio said on October 1 that it delivered 31,607 vehicles in the third quarter, a record for the firm and an increase of 29% over the third quarter of 2021.

The gross margin for Nio was 13.3%, which was somewhat better than the 13% margin it posted for the second quarter but lower than the 20.3% margin from a year earlier. According to Nio, decreased sales of regulatory credits, greater costs that have reduced margins on its cars, and increased expenditure on its charging and support networks are all to blame for the year-over-year margin reduction.

The company’s new ET5 car has drawn significant interest, according to CEO William Bin Li, who hopes it “will drive a big acceleration of our total revenue growth in the fourth quarter of 2022.” In September, the ET5, the company’s second car, started shipping.

Nio is striving to boost production and decrease client wait times now that the ET5 is ready, Li added. According to Nio, investors should anticipate the company delivering between 43,000 and 48,000 automobiles in the fourth quarter, bringing in between RMB17,368 million ($2.4 billion) and RMB19,225 million ($2.7 billion) in total revenue.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Related articles

The Benefits of a Creative Subscription with Envato Elements

If you’re looking to find and use royalty-free images and other creative resources, it can be tough to...

Get an Additional ₹100 Cashback When You Pay with Domino’s Digital Wallet Partners

How does ₹100 cashback sound? Find out more about the additional cashback you can get when you pay...

Get Unlimited Access to DataCamp’s Library of Online Courses

DataCamp subscriptions enable access to over 300 courses, as well as projects, assessments, and additional content. Whether you're...

Why You Should Buy from DaMENSCH: The Best in Quality, Service, and Value

Buying products online can be dangerous; you never know if you’re getting an authentic product, or one that’s...