Nio tumbles after disappointing quarterly results and a gloomy outlook
Lately, it seems like Chinese tech companies can do no wrong after having spent years in the wilderness.
But Nio is proving to be an exception to the newfound bullish mood on Chinese stocks.
Shares are off more than 4% on market open after the electric vehicle maker reported lower-than-expected sales and a loss in Q4 that was larger than expected.
Making matters worse, management’s first-quarter revenue forecast came in 30% below what analysts were anticipating, since the firm said its deliveries will be 35% shy of estimates.
The stock also slumped on Thursday ahead of earnings with a 8.9% decline, its biggest since November. With these back-to-back drops, shares have nearly erased all their year-to-date gains.
On a call with analysts, founder, chairman, and CEO William Bin Li said that the performance of its Onvo brand “did not meet our expectations.”
He said that in terms of its brand awareness, “It is actually far below its competitors. We are facing larger pressures regarding the fresh orders.”
