NIO Inc (NYSE:NIO) shares moved lower after the Chinese EV maker posted a wider-than-expected loss and revenue miss for the third quarter.
The company reported a net loss of 5.14 billion yuan (US$710 million), compared to 4.63 billion yuan in the same period last year and greater than the 4.75 billion yuan loss expected by Wall Street analysts.
On a per-share basis, NIO’s loss per share was 2.14 yuan (US$0.31), greater than the 1.92 yuan loss per share expected.
Revenue was down 2.1% year-over-year to 18.67 billion yuan (US$2.66 billion), below the consensus of 19.14 billion yuan.
During the quarter, NIO delivered 61,855 vehicles, consisting of 61,023 from its NIO brand and 832 from its ONVO brand. This marked an 11.6% increase year-over-year from 55,432 vehicle deliveries in Q3 2023.
“NIO brand has firmly secured the top position in China’s BEV market for vehicles priced over RMB 300,000, holding more than a 40% market share in the first three quarters of this year,” NIO CEO William Bin Li said in a statement.
“Deliveries of the ONVO L60 have also commenced, with production capacity set to rapidly expand in the next few months.”
Stanley Yu Qu, NIO’s CFO, added that ongoing cost optimizations helped the company increase its vehicle gross margin to 13.1% during the quarter.
“With continued expansion in sales volume and steady improvement in gross margin, our free cash flow turned positive this quarter,” he highlighted.
“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. We expect this momentum will drive continued improvements in the company’s operational and financial performance.”
NIO’s US-listed shares traded down 5.5% at US$4.37 in early trade on Wednesday.