Chinese EV major, NIO (NYSE: NIO) slid in pre-market trading after the company reported an adjusted diluted net loss per American Depository Share (ADS) of RMB3.28 ($0.45) in the second quarter as compared with RMB1.34 in the same period last year. However, analysts were expecting the company’s losses to narrow to $0.41 per share.
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NIO’s Q2 revenues fell 14.8% year-over-year to RMB8,771.7 million ($1.21 billion) and again fell short of Street estimates of $1.26 billion.
William Bin Li, Founder, Chairman, and CEO commented, “NIO delivered 23,520 vehicles in the second quarter of 2023. In July 2023, NIO delivered 20,462 vehicles, representing a substantial increase of 103.6% year-over-year, which propelled NIO to the top position in China’s premium electric vehicle market for vehicles priced above RMB300,000.”
The company also received a strategic equity investment of $738.5 million from CYVN Investments, an affiliate of CYVN Holdings, which is an investment vehicle wholly owned by the Abu Dhabi Government in July this year.
Looking forward, in Q3, NIO expects its vehicle deliveries to increase year-over-year in the range of 74% to 80.3% and is projected to be between 55,000 and 57,000 vehicles. The company estimates its Q3 revenues to be in the range of RMB18,898 million ($2.6 billion) and RMB19,520 million ($2.69 billion).
Analysts are cautiously optimistic about NIO stock with a Moderate Buy consensus rating based on seven Buys and five Holds.
