Nio Reports Net Loss in Q2, Expects Strong Vehicle Deliveries

One sentence summary – Chinese electric vehicle manufacturer Nio reported a net loss of $835.1 million in the second quarter, more than double the loss from the same period last year, causing a 5% drop in shares; however, strong July sales, a recent equity investment from Abu Dhabi, and a projected increase in vehicle deliveries for the third quarter have boosted the company’s outlook.

At a glance

  • Nio reported a net loss of $835.1 million in Q2, more than double the loss from the same period last year.
  • Nio’s shares fell by 5% following the announcement of the net loss.
  • The reported net loss is based on GAAP and even after excluding share-based compensation expenses, Nio still had a net loss of $835.1 million.
  • Nio’s gross margin on vehicles for Q2 was 6.2%, a decline from the previous year but an improvement from Q1 2023.
  • Nio expects to deliver between 55,000 and 57,000 vehicles in Q3 and projects revenue between $2.61 billion and $2.69 billion for the same period.

The details

Chinese electric vehicle manufacturer, Nio, has reported a net loss of $835.1 million in the second quarter.

This figure is more than double the loss reported by the company in the same period last year.

Following the announcement, Nio’s shares fell by 5%.

The reported net loss of $835.1 million is based on Generally Accepted Accounting Principles (GAAP).

Even after excluding share-based compensation expenses, Nio’s adjusted figures still indicate a net loss of $835.1 million.

In terms of Chinese yuan, the company reported a net loss of 6.06 billion, or 3.70 yuan per share.

This is a significant increase from a loss of 2.76 billion yuan, or 1.68 yuan per share, reported in the same period last year.

Nio’s gross margin on vehicles for the second quarter was 6.2%.

This is a decline from the 16.7% gross margin reported in the previous year.

However, it is an improvement from the 5.1% gross margin reported in the first quarter of 2023.

In July, Nio launched a revamped version of its ES6 crossover and a station wagon version of its ET5 sedan.

This resulted in a significant increase in vehicle deliveries, with 20,462 vehicles being delivered in July alone.

In total, Nio delivered 23,520 vehicles during the second quarter.

This was achieved by selling its outgoing models at discounted prices.

Nio’s CEO, William Bin Li, announced that the company’s July sales propelled it to the top of China’s electric vehicle sales charts for vehicles priced above 300,000 yuan.

In July, Nio also received a substantial equity investment of $738.5 million.

This investment came from a fund controlled by the government of Abu Dhabi.

The investment has significantly boosted the company’s balance sheet.

Looking ahead, Nio expects to deliver between 55,000 and 57,000 vehicles in the third quarter.

The company’s revenue for the third quarter is projected to be between $2.61 billion and $2.69 billion.

In summary, despite reporting a net loss of $835.1 million in the second quarter, Nio’s July sales were strong.

The company topped China’s EV sales charts for vehicles priced above 300,000 yuan.

A recent equity investment from Abu Dhabi has also strengthened Nio’s balance sheet.

The company is now aiming to deliver between 55,000 and 57,000 vehicles in the third quarter.

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A car driving towards a bright horizon with a downward arrow symbolizing the net loss, while a line of cars waiting to be delivered represents the strong vehicle deliveries.

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cnbc.com
– Nio, a Chinese electric vehicle maker, reported a net loss of $835.1 million in the second quarter, more than double its loss from the previous year.
The company’s shares dropped 5% following the news.
– Nio’s adjusted figures exclude share-based compensation expenses, while on a GAAP basis, the company reported a net loss of $835.1 million.
In Chinese yuan, Nio reported a net loss of 6.06 billion, or 3.70 yuan per share, compared to a loss of 2.76 billion yuan, or 1.68 yuan per share, a year ago.
– Nio’s gross margin on vehicles for the second quarter was 6.2%, down from 16.7% the previous year but up from 5.1% in the first quarter of 2023.
The company launched a revamped version of its ES6 crossover and a station wagon version of its ET5 sedan, resulting in 20,462 vehicles delivered in July alone.
– Nio delivered 23,520 vehicles in the second quarter as it sold its outgoing models with discounts.
– CEO William Bin Li stated that Nio’s July sales put the company at the top of China’s EV sales charts for vehicles priced above 300,000 yuan.
– Nio received a $738.5 million equity investment from a fund controlled by the government of Abu Dhabi in July, boosting its balance sheet.
The company expects to deliver between 55,000 and 57,000 vehicles in the third quarter, with revenue projected to be between $2.61 billion and $2.69 billion.

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