Skip to main content

American depositary receipts of NIO Inc. (NIO) - Get NIO Inc. American depositary shares each representing one Class A Report slumped 19.6% to $8.17 on Wednesday after the so-called Tesla of China posted a wider-than-expected loss in the fourth quarter and said it experienced "a greater-than-anticipated slowdown in monthly deliveries" of its ES8 sport-utility vehicle.

The Shanghai-based electric carmaker posted a fourth-quarter loss of 3.5 billion renminbi ($520 million), or 49 cents per ADR. Analysts had expected a loss of 32 cents per ADR. Revenue in the quarter of 3.4 billion renminbi topped analysts' forecasts.

NIO said it delivered 7,980 ES8 sport-utility vehicles in the fourth quarter in China vs. 3,268 vehicles delivered in the third quarter. The company said, however, that deliveries of the ES8 in January and February were 1,805 and 811 vehicles, respectively, "which reflect a greater-than-anticipated slowdown in monthly deliveries compared to December 2018.

"The sequential slowdown in vehicle deliveries in January and February was mainly caused by accelerated deliveries made at the end of last year in anticipation of EV subsidy reductions in China in 2019, the seasonal slowdowns surrounding the January 1st and Chinese New Year holidays, as well as the current slowdown of macro-economic conditions in China, particularly in the automotive sector," NIO said in a press release.

Scroll to Continue

TheStreet Recommends

The company also said it won't be building a factory in Shanghai. It had signed agreements with the government in 2017 for the project.

"This new initiative allows NIO to focus on the joint manufacturing model in the long term," NIO said. "The company believes that the existing NIO/JAC plant in Hefei will give it capacity and flexibility to support its market penetration and growth plans for the next two to three years."


A Special Invitation:
Do you want to learn more about planning for and living retirement from the nation's top experts, including Ed Slott and Robert Powell, the editor of TheStreet's Retirement Daily? Want to learn how to create tax-efficient income in retirement and how to manage and mitigate all the risks you'll face in retirement? Then sign up to attend TheStreet's Retirement Strategies Symposium on April 6 in New York City. For a limited time, you can attend this extraordinary symposium for $149 - a cost savings of $50 off the general admission price of $199.

You can see the full day's agenda, learn about the guest speakers and sign up HERE for this special event.

Watch TheStreet's Behind the Label video series | More videos on our Youtube Channel