𝗡𝗜𝗢 - 𝘄𝗵𝘆 𝗶𝘁'𝘀 𝗿𝗲𝗱 𝗱𝗲𝘀𝗽𝗶𝘁𝗲 𝗯𝗲𝗮𝘁𝗶𝗻𝗴 𝗲𝘅𝗽𝗲𝗰𝘁𝗮𝘁𝗶𝗼𝗻𝘀

NIO managed to exceed expectations for the third quarter. However, investors seemed disappointed with its vehicle deliveries and sales outlook for the fourth quarter.

The weak guidance sent its shares down more than two percent in the after-hours trading session on Tuesday, November 9. Now, however, it looks stabilizing.

𝗤𝟯 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀

NIO reported a loss of 28 cents per American depository share (ADS) for the three months ended September 30, wider than a loss of 15 cents per ADS in the comparable period of 2020. On an adjusted, the loss of 6 cents per ADS was narrower than the loss of 12 cents per ADS in the same period last year.

Total revenue for the quarter climbed nearly 116 percent on a year-over-year basis to $1.53 billion. Analysts expected the Chinese electric vehicle maker to post a loss of 9 cents per share on revenue of $1.46 billion.

If we look at a couple of key growth drivers, vehicle deliveries in the quarter increased 100.2 percent versus last year to 24,439. Moreover, the vehicle margin in the quarter was 18 percent, compared to 14.5 percent in the same period of 2020.

𝗤𝟰 𝗚𝘂𝗶𝗱𝗮𝗻𝗰𝗲

NIO offered weak vehicle deliveries and sales outlook for the fourth quarter, citing supply chain disruptions and restructuring of manufacturing lines. The company said that it delivered 3,667 vehicles in October, down 27.5 percent versus the same month of 2020.

For the fourth quarter, NIO expects vehicle deliveries in the range of 23,500 to 25,500, nearly unchanged from the vehicle deliveries in the third quarter.

In addition, the company expects to generate revenue between $1.45 billion and $1.57 billion for the fourth quarter, almost flat when compared to the third quarter and below analysts’ average estimate of $1.69 billion.

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