NIO (NIO) - Get NIO Inc. Sponsored ADR Class A Report posted better-than-expected second-quarter earnings Wednesday as the Chinese electric vehicle company reported a jump in revenue and raised its guidance.
Shares of the Shanghai company were essentially flat at $43.99 in after-hours trading.
NIO reported a net loss of 7 cents a share. The adjusted loss coming to 3 cents a share. Analysts surveyed by FactSet were calling for a loss of 9 cents a share.
Revenue totaled $1.31 billion, up 127.2% from a year ago. The FactSet consensus called for revenue of $1.30 billion.
Vehicle sales came to $1.23 billion, up 127% from a year ago.
The company said the increase in vehicle sales in the quarter was mainly attributed to higher deliveries achieved from more product mix offered to NIO's users.
NIO delivered 7,931 vehicles in July, up 124.5% year-over-year, but down 1.9% from 8,083 in June.
For the third quarter, NIO said it expects to deliver between 23,000 and 25,000 vehicles, up 88.4% to 104.8% from a year ago.
Revenue for the third quarter is expected to range from $1.38 billion to $1.49 billion, up 96.9% to 112.8% from a year ago. FactSet is calling for revenue of $1.32 billion.
William Bin Li, NIO's founder, chairman and CEO, said in a statement that the company achieved a record-high quarterly delivery of 21,896 vehicles in the second quarter of 2021:
"While the global supply chain still faces uncertainties, we have been working closely with our partners to improve the overall supply chain production capacity," Bin said. "We aim to deliver three new products based on the NIO Technology Platform 2.0 in 2022, including ET7, a flagship premium smart electric sedan."
Steven Wei Feng, NIO's chief financial officer, said vehicle margin and gross margin reached 20.3% and 18.6% respectively.
The increase of vehicle margin was mainly driven by the increase of vehicle delivery volume, higher average selling price, as well as lower material cost, the company said.
Last month, NIO said that by the end of 2025 it planned to add 3,700 battery-swap stations, which would give it 4,000.