NIO Inc (NYSE:NIO) stock rose more than 5% Tuesday morning after the Chinese EV producer reported a slimmer-than-expected third-quarter loss.
The company posted revenue of 19.1 billion Chinese yuan (US$2.7 billion), up 47% year-over-year and above the 19.4 billion yuan expected by analysts. Its loss per share was 2.67 yuan, compared to 3.7 yuan a year earlier and narrower than the expected loss of 2.91 yuan per share.
CEO William Li emphasized Nio’s efficiency, a month after slashing 10% of its workforce due to “fierce competition.”
Notably, Nio has yet to post a profitable quarter since the company was founded in 2014.
“We have identified opportunities to optimize our organization, reduce costs and enhance efficiency,” Li said.
Looking forward, Nio guided for fourth-quarter revenue from 16.1 billion yuan to 16.7 billion yuan, which would represent year-over-year growth of 0.1% to 4%. Analysts have projected 22.4 billion yuan.
The company estimates it will deliver between 47,000 and 49,000 vehicles in the period, up about 17% to 22% from a year earlier.
Nio also announced a 3.16 billion yuan deal to acquire manufacturing equipment and other assets from Anhui Jianghuai Automobile Group Corp, a company that currently builds Nio vehicles.
Bringing that manufacturing capacity in-house is expected to cut the associated cost by 10%, the company said. Battery manufacturing will continue with a third party, however.
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