Revenue Loss Forecast for Nio Earnings in Q3 2022

Employees stand next to an ET7 sedan at a NIO Inc. dealership in Shanghai, China, Wednesday, June 8, 2022.

Qilai Shen | Bloomberg | Getty Images

Chinese electric vehicle maker Nio reported a third-quarter loss of $577.9 million on Thursday, much larger than a year ago, despite strong revenue following a 29% increase in vehicle sales .

Here are the key numbers from Nio’s third quarter earnings report.

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  • Revenue: $1.83 billion, up 32.6% from the third quarter of 2021.
  • Adjusted loss per share: 30 cents, compared to 6 cents per share a year ago.
  • Cash at the end of the quarter: $7.2 billion, compared to $8.1 billion as of June 30.

Shares of the company closed more than 11% higher on Thursday.

Nio said on October 1 it delivered 31,607 vehicles in the third quarter, up 29% from the third quarter of 2021 and a record for the company.

Nio’s gross margin was 13.3%, slightly improved from the 13% margin it reported in the second quarter, but down from 20.3% a year ago. Nio said the year-over-year margin decline was due to lower regulatory credit sales, higher costs that squeezed its vehicle margins and higher spending on its networks. charging and service.

CEO William Bin Li said in a statement that the company has seen strong interest in its new ET5 sedan, which he says will “support a substantial acceleration in our overall revenue growth in the fourth quarter of 2022.” The ET5, the company’s second sedan, began shipping in September.

With ET5 now available, Nio is working to increase production and shorten customer wait times, Li said. Nio said investors should expect it to deliver 43,000 and 48,000 vehicles in the fourth quarter, generating total revenues between RMB17,368 million ($2.4 billion) and RMB19,225 million ($2.7 billion).

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