NIO moved closer to profitability in its second quarter as rising demand for electric vehicles helped the Shanghai company narrow its losses for the fourth quarter in a row.
NIO said its second-quarter loss shrank to 1.2 billion yuan ($173 million) from 3.3 billion yuan a year earlier. On an adjusted basis, the company lost 1.1 billion yuan, or 1.08 yuan a share, vs. a loss of 3.2 billion yuan, or 3.11 yuan a share a year ago.
Analysts polled by FactSet had been expecting a per-share loss of 1.70 yuan. Revenue nearly doubled to 3.7 billion yuan (US$526.4 million) vs. 1.5 billion yuan in the comparable year-ago period, and was also above analysts’ forecasts of 3.5 billion yuan.
NIO, which went public in New York in 2018, has both cut costs and borrowed capital to keep itself operational through the pandemic. Gross margin, or revenue minus production costs, was positive for the first time in the second quarter.
Demand for its ES6 and ES8 electric SUVs continued to attract buyers as the coronavirus pandemic and a return to semi-normalcy dominated Chinese life. NIO said it has delivered 17,702 vehicles so far in 2020, more than double from a year ago.
Still, NIO lags far behind Tesla, whose registrations in China topped 50,000 in the first half of 2020
So what does Jim Cramer think about these two companies?
Watch the full interview above for more.
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