Stocks of Nio and Chinese EV Makers are little changed after the quarter’s results fell short of expectations

TAKEAWAYS KEY

• Nio's U.S.-listed shares are little changed in mid-day trading, after the Chinese electric vehicle maker posted quarterly sales that lagged analysts’ forecasts and a wider-than-expected loss.
• A fierce price war between rivals forced the Chinese company to reduce its car prices.
• Nio expects to deliver up to 75,000 units in the current quarter. This is an increase from the 61,855 units delivered in the third quarter.

Nio’s shares (NIO) are listed on the U.S. stock exchange The mid-day market is little changed after the Chinese electric car maker reported worse than expected quarterly results. This included a larger-than anticipated loss.

The Chinese company has reduced the average selling price of their cars in an intense price war within China with its rivals. Revenues for its third-quarter totaled 18.67 billion yuan (2.57 billion dollars). Visible Alpha polled analysts and the consensus estimate was 19.14 billion yuan. 

The company’s net loss of 5.14 billion Yuan for the period, which increased from 4.63 billion Yuan during the same period in last year, exceeded analyst estimates of a loss of 4.75 billion Yuan.

Nio Predicts Record Q4 Deliveries

The third quarter saw a jump of almost 12% in vehicle deliveries. This equates to 61 855 vehicles. Vehicle sales, however, fell by 4.1%. “lower average selling prices.”

William Bin Li, the CEO and founder of Nio, said that the company has more than 40% market share for the segment of battery electric vehicles (BEVs) priced at or above 300,000 Yuan ($41397). The total volume is expected to be delivered in the current quarter. “to reach a new record.”

Nio expects deliveries between 72,000 to 75,000 units in the current quarter, and revenues between 19,68 billion and 20,38 billion yuan.

Nio shares were little altered by midday, and have fallen almost 50% in the past year. 

Update-This article has been updated with new market data as of November 20, 2024.

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