Tuesday, December 7, 2021

Nio Stock up 7% after Earnings, Revenue up 116% YOY

Chinese EV manufacturer Nio has presented its financial figures for the third quarter of 2021. The Company was able to significantly increase its quarterly sales but the bottom line remains in the red.

Nio’s total revenue from July to September was around 9.8 billion yuan (about $1.53 billion), up 116 per cent from the third quarter of 2020 and up 16 per cent from the second quarter of 2021.

Unfortunately, Nio’s Profits remains in the red with a net loss of 835.3 million yuan (about $120 million).

Compared to the second quarter of 2021, the loss increased by 42.3 per cent. Nevertheless, Nio reports a vehicle margin of 18.0 per cent. Shareholders didn’t seem to mind the loss and the Company’s shares went up 6% after the earnings report:

Nio Stock almost up 7% after the Earnings Announcement

Nio delivered 24,439 electric cars in the period. This is twice as many as in the same quarter of the previous year and 11.6 per cent more than in Q2 2021.

The reason for the slower growth is primarily one-off effects in October: Nio had delivered only around 3,667 vehicles here, otherwise it was usually around 10,000 vehicles in the previous months.

According to Nio, however, these are one-off effects due to “restructuring and modernization of the production lines as well as preparation for the introduction of new products”.

This may also partly explain the increased net loss compared to Q2: The plant conversion costs money, but, at the same time fewer cars are being delivered.

The Stock is still down for the year and its unknown when the Company will become profitable.

See also  BYD founder Wang Chuanfu predicts that EV will account for 70% of China’s new car sales by 2030
Nio Stock YTD

“Our demand continues to be strong and our new orders reached a new record high in October,” says William Bin Li, Nio founder and CEO. “Despite the continued supply chain volatilities, our teams and partners are working closely together to secure the supply and production for the fourth quarter of 2021.”

Hi I'm Leanne. I'm a big fan of electric cars (drive a Model 3 myself) and support the movement to go electric! I hope you enjoy my Articles here on the website.
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