Nio (NIO.US) ADR erased premarket losses and is trading nearly 10.0% higher despite the Chinese EV producer recorded a wider-than-expected quarterly loss. However company expects that deliveries will nearly double in Q4 compared to last year levels despite Covid-related supply disruptions
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Company reported a quarterly loss of 30 cents per ADR, well above analysts’ estimates of 14 cents per ADR. On the other hand, Q3 revenue increased 33% to $1.83 billion, topping market estimates of $1.799 billion.
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Nio recorded $7.2 billion in cash at the end of September, down from $8.1 billion at the end of June.
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Nio’s gross margin rose slightly to 13.3%, from the 13% margin it reported in Q2, but down from 20.3% a year ago. Margins have been negatively affected by rising costs and lower sales of regulatory credits. Nevertheless its new ET5 sedan is gaining popularity and the company expects a record fourth quarter.
Nio Q3 financial highlights. Source: ir.nio.com
Nio revenue ais moving on a steady upward trend. Source: CnEVPost
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"We have witnessed strong growth momentum in user demand and robust foot traffic, especially after the debut of ET5s in stores from September," said CEO William Li.
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Most importantly, the company announced that on October 1 it delivered 31,607 cars in Q3, which is a 29% increase compared to the third quarter of 2021 and a record for the company.
Deliveries rose sharply in the latest quarter, which is an optimistic sign. Source: ir.nio.com
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Company is now focusing on increasing production and shorten customer waiting times, Li said. EV maker plans to deliver 43,000 and 48,000 vehicles in the current quarter, which would generate total revenue between RMB 17,368 million ($2.4 billion) and RMB 19,225 million ($2.7 billion).
Nio led the Chinese electric vehicle sector higher during today's session, with Li Auto (LI.US) and XPeng (XPEV.US) shares both jumped around 10.0%. Nevertheless all three stocks have a long way to go before the erase recent losses. Source: seekingalpha.com
Nio (NIO.US) is trading approximately 85.0% below its all-time high at $66.80 recorded in January 2021. Recently stock has been moving with a local upward channel and only a decisive break above the upper limit of the formation would indicate a potential shift in market sentiment. Source: xStation5
