Electric vehicle company Nio missed estimates last quarter, as vehicle deliveries slowed in July and August amid China’s price wars.
Shanghai-based Nio reported revenue of CN¥19.01 billion (US$2.65 billion, A$4.09 billion), up 9.0% year-over-year but below Visible Alpha estimates of ¥19.91 billion. Its net loss was ¥5.14 billion, 1.0% greater than in 2024’s second quarter and missing estimates of a ¥4.96 billion loss.
“The strong market reception of ONVO L90 and NIO All-New ES8 has reinforced our overall sales momentum. Driven by this strong demand, we anticipate total deliveries in the third quarter to range between 87,000 and 91,000, representing a year-on-year growth of 40.7% to 47.1% and setting a new Company record,” said Nio CEO William Bin Li.
Total Q2 deliveries were up 25.6% to 72,056, but Nio reported 21,017 deliveries in July and 31,305 in August. In July and August 2024, the company made 20,498 and 20,176 deliveries, respectively.
China’s government has pushed EV companies to halt price cuts and constrain production in recent months. Other Chinese EV makers like BYD and Li Auto also reported a decline in deliveries in July, with BYD’s profit dropping for the first time in more than three years.
“Starting from the second quarter, our comprehensive cost reduction and efficiency improvement initiatives have started to yield results. Excluding organisational optimisation charges, our non-GAAP operating loss improved by over 30% sequentially,” said Nio CFO Stanley Yu Qu.
“We are now approaching a structural inflection point in our financials, with positive momentum building toward a sustainable virtuous cycle and continued performance improvements.”
Nio’s operating loss was ¥4.91 billion, expanding 5.8% year-over-year. Its gross profit was up 12.4% to ¥1.90 billion, and its gross margin increased from 9.7% to 10.0%.
Vehicle sales revenues were ¥16.14 billion, up 2.9%, while other sales revenues rose 62.6% to ¥2.87 billion.
Its third-quarter outlook expects total revenue of ¥21.81-22.88 billion.
Nio’s (NYSE: NIO) share price closed at US$6.58, up 3.1% from its previous close at $6.38. Its market capitalisation is $14.06 billion.
