NIO Inc (NYSE:NIO) fell in Tuesday’s early deals after the Chinese electric vehicle (EV) firm reported a wider-than-expected net loss, amid lower sales and deliveries.
The company reported a second-quarter net loss of RMB5.79 billion ($798.9 million), up from RMB2.26 billion in the same period a year ago.
At RMB3.28, the adjusted losses per American depositary share (ADS) missed the consensus analyst forecast pegged at RMB2.96.
Revenue amounted to RMB8.77 billion ($1.21 billion), a drop of 14.8% year-on-year, and missed market forecasts for RMB9.16 billion.
Vehicle sales were down just over 22% from the preceding three months, and were down 24.9% year-on-year.
NIO chief executive William Bin Li, meanwhile, pointed to improved EV delivery volumes since the end of the June quarter.
“NIO delivered 23,520 vehicles in the second quarter of 2023,” Li commented, in a statement.
“In July 2023, NIO delivered 20,462 vehicles, representing a substantial increase of 103.6% year-over-year, which propelled NIO to the top position in China's premium electric vehicle market for vehicles priced above RMB300,000.”
Steven Wei Feng, NIO chief financial officer, highlighted a significant recent investment into the company.
“In July 2023, NIO closed the US$738.5 million strategic equity investment from CYVN Entities, which demonstrated NIO’s unique values in the smart electric vehicle industry.
“This transaction further strengthened our balance sheet, powering our continuous endeavors in accelerating business growth, driving technological innovations and building long-term competitiveness.
“We will remain dedicated to improving our operational efficiency while pursuing continuous growth.”
NIO updated its guidance for its third quarter, pitching outlook for revenue in the range between RMB18.90 billion and RMB19.52 billion, compared to RMB13.00 billion achieved last year and current analyst consensus of RMB18.03 billion.
It is expecting to deliver between 55,000 and 57,000 EVs in Q3, which would be a significant increase from last year’s 31,607 EVs.
In New York, NIO’s ADR stock was down 4.54%, trading at $10.52 ahead of Tuesday's open.