Shares of NIO (NIO) were on an upswing in pre-market trading after the Chinese EV major reported robust second-quarter results. In the second quarter, NIO’s adjusted loss per American Depositary Share (ADS) narrowed to RMB2.21 ($0.30), compared to a loss of RMB3.28 in the same period last year. This was better than analysts’ expectations of a loss of $0.31 per share.
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NIO’s Revenues Soar in Q2
Furthermore, the company’s revenues soared by 98.9% year-over-year to RMB17.44 billion ($2.4 billion), though they still fell short of Street estimates of $2.46 billion.
Additionally, the company’s vehicle gross margin rose to 12.2%, up from 6.2% in the same period last year, driven by lower material costs and increased operational efficiencies.
NIO Reports Robust Vehicle Deliveries in Q2
NIO’s vehicle deliveries also achieved a new high in the second quarter. NIO delivered 20,498 vehicles in July and 20,176 in August 2024, bringing total cumulative vehicle deliveries to 577,694 as of August 31, 2024. Furthermore, in the second quarter, NIO set a new record by delivering 57,373 premium smart electric vehicle deliveries. As a result, the company captured more than 40% of the market share for battery electric vehicles priced above RMB 300,000 in China.
NIO Projects Upbeat Outlook for Q3
Looking ahead, in the third quarter, NIO expects its vehicle deliveries to increase in the range of 10% to 13.7% year-over-year to be between 61,000 and 63,000 units. In the third quarter, revenues are projected to be between RMB19.1 billion ($2.63 billion) and RMB19.66 billion ($2.7 billion). This is above analysts’ expectations of $2.6 billion.
What Is the Future Price of NIO Stock?
Analysts remain cautiously optimistic about NIO stock, with a Moderate Buy consensus rating based on four Buys, five Holds, and one Sell. Over the past year, NIO has declined by more than 55%, and the average NIO price target of $6.22 implies an upside potential of 46.7% from current levels. These analyst ratings are likely to change following NIO’s results today.
