NIO Inc (NYSE:NIO) shares dipped almost 4% in pre-market trading on Wednesday after the electric vehicle maker reported a drop in sales and wider losses for the third quarter.
Revenue fell by 2.1% to 18.7 billion yuan ($2.7 billion) over the three months to September, NIO reported on Wednesday.
Vehicle sales dropped by 4.1% to 16.7 billion yuan, despite an increase in deliveries from 55,432 to 61,855 year on year.
“The slight decrease [...] was mainly due to the lower average selling price as a result of changes in product mix, partially offset by the increase in delivery volume,” NIO said.
Net losses widened by 11.0% to 5.1 billion yuan on the back of the drop, which comes as Chinese electric vehicle makers grapple to win market share through a heated price war.
NIO chief executive William Bin Li noted the company had “firmly secured the top position” in the Chinese market for vehicles priced over 300,000 yuan.
“Starting next year, our three brands are poised to embark on a robust product cycle, projected to elevate the company’s sales volume to new heights,” chief financial officer Stanley Yu Qu added.
“We expect this momentum will drive continued improvements in the company’s operational and financial performance.”
Deliveries of 72,000 and 75,000 cars were projected for the coming quarter, alongside revenue of 19.7 million yuan to 20.4 billion yuan.
Shares fell 3.7% in pre-market trading.