Shares of NIO (NYSE: NIO) trended lower on Wednesday as the Chinese EV maker posted widening losses in Q2. The company posted a loss of RMB 2,745.0 million ($409.8 million) in Q2, up by 316.4% from the same quarter last year.
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However, NIO’s deliveries ticked higher by 14.4% year-over-year to 25,059 vehicles in Q2. Total revenues increased by 21.8% year-over-year to $1,536.6 million in Q2, beating Street estimates by $120 million. The company’s gross margin, however, contracted to 13% in Q2 versus 18.6% in the same period last year.
Steven Wei Feng, NIO’s CFO commented on the results, “We achieved solid financial results for the second quarter of 2022 in spite of the tremendous challenges and cost volatilities.”
For Q3, NIO has forecasted its revenues to range between $1,918 million and $2,030 million, with growth in the range of 31% to 38.7% year-over-year.
Is NIO a Buy, Sell or Hold?
Analysts continue to be optimistic about NIO with a Strong Buy consensus rating based on unanimous 11 Buys.
NIO’s average price forecast of $31.84 implies an 82.2% upside potential.
