EV Maker Nio Lower After Q2 Financial Results

Q2 2021 Results

After the US markets closed on Wednesday August 11th, NIO Inc. (NIO.us) announced solid financial results for the second quarter of the year.

Total Revenues surged 127.2% on yearly basis - coming in at RMB 8.448 billion (US$ 1.308 billion), 5.8% higher compared to the previous quarter.

Its Net Loss narrowed to RMB 0.42/share in Q2 (basic and diluted), against the far wider losses/share of RMB 1.15 a year ago and RMB 3.14 in Q1.

Vehicle Deliveries

The Chinese EV maker had already announced the delivery of 21,896 vehicles for the second quarter of the year – in line with its own forecast of 21K-22K – which represented a 111.9% y/y increase.

These are impressive figures, but they are considerably lower compared to rival Tesla, which has reported 201,250 deliveries during the same period.

Nio's latest figures were less impressive though, as per the August 2nd press release they revealed the delivery of 7,931 vehicles in July. While this marked a 124.5% year-over-year rise, it was still lower compared to June's record figure of 8,083 cars.

Q3 Guidance and Future Models

The company expects vehicles deliveries to be between 23,000 and 25,000 units for the third quarter of the year, which would constitute a noteworthy year-over-year rise in the range of 88.4% to 104.8%.

It also forecasts Total Revenues between RMB 8.91 billion and RMB 9.631 billion – an increase of approximately 96.9% to 112.8% compared to Q3 2020.

William Bin Li, its founder, chairman and CEO acknowledged the global supply chain uncertainties but commented that "we have been working closely with our partners to improve the overall supply chain production capacity"

He also announced that the company aims to deliver three new models in 2022 including the ET7 premium smart electric sedan.

European Entry

During the reported period, NIO ES8 smart electric flagship SUV obtained European Whole Vehicle Type Approval (EWVTA), for mass production and license plate registration in all EU countries.

This gave the Shanghai-based firm the ability to move forward with its plan to step overseas, as announced in the May "NIO Norway Press Conference", with the first batch of ES8s for user delivery having beeen shipped from Shanghai Waigaoqiao Port to Norway last month.

Stock Reaction

NIO.us had registered a more than 36% rise during the second quarter, but July ended with losses below $45.00. Despite Wednesday's strong quarterly report, NIO.us dropped on Thursday and registered a more than 6% decline last week (August 9-13), closing just above $40.00 on Friday.

Nikos Tzabouras

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and…

View Profile

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Risk Warning: Our service includes products that are traded on margin and carry a risk of total loss of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)