NIO (NYSE:NIO) slid in pre-market trading after the Chinese EV major announced disappointing Q1 results. The company reported Q1 adjusted loss of RMB2.39 ($0.33) per diluted American Depository Share (ADS), compared to an adjusted loss of RMB2.51 per ADS in the same quarter last year. This loss was wider than analysts’ estimates of a loss of $0.30 per share.
Total sales declined by 7.2% year-over-year to RMB9.9 billion ($1.37 billion) but fell short of analysts’ expectations of $1.44 billion. The company’s vehicle sales declined by 9.1% year-over-year to $1.16 billion.
In the first quarter, NIO delivered 30,053 vehicles, consisting of 17,809 premium smart electric SUVs and 12,244 premium smart electric sedans, a decline of 3.2% year-over-year.
NIO’s Q2 Outlook
Looking forward, management now expects vehicle deliveries in the second quarter to be between 54,000 and 56,000 units, representing an increase of around 129.6% to 138.1% year-over-year. NIO has projected total revenues in the second quarter to be between RMB 16.58 billion ($2.2 billion) and RMB 17.14 billion ($2.37 billion), representing an increase of around 89.1% to 95.3% year-over-year. For reference, analysts are estimating Q2 revenues of $1.99 billion.
Is NIO a Buy or Sell?
Analysts remain cautiously optimistic about NIO stock, with a Moderate Buy consensus rating based on five Buys, six Holds, and one Sell. Over the past year, NIO has declined by more than 30%, and the average NIO price target of $6.65 implies an upside potential of 26.2% from current levels. However, these analyst ratings will likely change following NIO’s Q1 results today.
