Nio Shares Rev Up as Third-Quarter Results Beat Estimates

Nio soars after the Chinese electric-vehicle company beats Wall Street's third-quarter estimates.
Author:
Updated:
Original:

Shares of Nio (NIO) - Get Report soared 43% to $3.46  Monday after the Chinese electric-vehicle company beat Wall Street's fiscal third-quarter estimates.

The Shanghai-based company reported a loss of RMB2.52 billion ($352.8 million), or RMB2.48 a share, an improvement fromr the loss of RMB2.81 billion, or RMB42.59 a year ago. The adjusted loss came to RMB2.38 (33 cents) a share.

Revenue totaled RMB1.84 billion ($257 million), up 25% from a year ago. 

Analysts were expecting Nio to report a loss of RMB2.53 a share on revenue of RMB1.70 billion.

Vehicle sales were RMB1,733.5 million (US$242.5 million) up 21.5% from a year ago. Vehicle deliveries totaled 4,799 in the third quarter, including 4,196 ES6s and 603 ES8s, compared with 3,553 vehicles delivered in the second quarter.

Looking ahead, Nio said it expects fourth-quarter vehicle deliveries of more than 8,000 units, up 66.7% from the third quarter.

"The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China,” William Bin Li, founder, chairman and CEO, said in a statement. "Despite the challenges, Nio’s sales improved solidly since September."

Facing a continuous soft auto market, Li said that "we strongly believe the smart premium EV sector will outperform the industry in its growth rate in the foreseeable future."

Last week, Nio unveiled its third production model, the EC6, a smart premium electric coupe SUV.

The EC6 performance version is equipped with a 160-kW permanent magnet motor and a 240-kW induction motor and capable of accelerating from zero to 100 kph (62.1 mph) in just 4.7 seconds.