Nio rises despite earnings miss as its delivery growth beats rivals
Chinese EV company Nio posted a deeper net loss and lower revenue than Wall Street expected.
Chinese EV company Nio rose in premarket trading Tuesday, despite the Tesla rival missing Wall Street’s expectations in its earnings report.
Nio posted a net loss equivalent to about $721 million in its second quarter, roughly $42 million steeper than analysts polled by FactSet had anticipated. Sales also came in below expectations, equivalent to $2.67 billion, versus the $2.75 billion consensus.
Nio’s August deliveries could have something to do with its stock rising 1.6% in premarket trading. The company delivered a record 31,305 vehicles last month, up 55% from last year. As Nio grows, some of its rivals in China are seeing deceleration amid fierce competition that’s led the government to urge EV companies to stop their price war. (Most major automakers in the country have ignored the request so far.)
BYD, the world’s largest EV company, posted August delivery growth of less than 1% — though it’s still handing off more than 10x the number of vehicles as Nio. Li Auto delivered 28,529 vehicles, down 41%. Tesla doesn’t report monthly deliveries, but according to data from the China Passenger Car Association as reported by CnEVPost, its China business delivered 4% fewer vehicles in August than last year.
Nio has pounced on Tesla’s struggles, launching two direct competitors to the Model Y, China’s bestselling SUV. Nio delivered more than 10,500 Onvo L90s in the vehicle’s first month on the market.
