NIO Inc (NYSE:NIO) did some deft driving in narrowing its first quarter loss, but the Chinese electric vehicle maker’s stock fell in premarket trade on Friday as investors noted that vehicle margins contracted.
For the period ended March 31, 2023, the Shanghai, China-based car maker announced an adjusted diluted net loss in the quarter of $0.36 per American Depository Share (ADS), while the consensus estimate was a loss of $0.39 per ADS.
The company posted revenue of $1.55 billion in the quarter, an increase of 7.7% from the first quarter of 2022 and a decrease of 33.5 % from the fourth quarter of 2022.
The company said it expects 2Q revenue of $1.27 billion to $1.36 billion, representing a decrease in the range of 15.1% to 9% year-over-year, compared to what Wall Street would like.
That speed bump sent NIO shares down 1.13% to $7.70 in premarket trade.
“NIO delivered 31,041 vehicles in 1Q 2023, ranking first in the premium battery electric vehicle market priced over RMB400,000 in China for 12 consecutive quarters,” said NIO founder and CEO William Bin Li.
Looking forward, NIO expects to deliver between 23,000 and 25,000 vehicles in 2Q, a decline of around 8.2% to 0.2% year-over-year.
NIO had a healthy cash reserve with cash, equivalents and long-term deposits of $5.5 billion as of March 31, 2023.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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