NIO Inc (NYSE:NIO) shares fell after the Chinese electric vehicle maker posted second-quarter revenue that missed Wall Street expectations, even as the company narrowed its losses and pointed to improving margins.
Revenue rose 69.1% year-over-year to RMB32.14 billion ($4.74 billion), falling short of the roughly $4.95 billion analysts had expected.
The company's GAAP net loss narrowed sharply to RMB528 million from RMB4.99 billion a year earlier, and Nio reported an adjusted profit for the quarter. Vehicle margin improved to 18.5% from 10.3% a year prior, while overall gross margin expanded to 18.4%.
Vehicle deliveries climbed 49.4% year-over-year to 107,658 units.
For the third quarter, Nio said it expects deliveries of between 108,000 and 111,000 vehicles, a 24% to 27.5% increase from a year earlier. The company projected revenue of RMB33.29 billion to RMB34.05 billion ($4.9 billion to $5 billion), up 52.7% to 56.2% year-over-year but slightly below initial Wall Street projections.
Management flagged rising component costs, including for batteries and memory chips, that are expected to add RMB2,000 to RMB3,000 per vehicle in the second half of the year.
Shares of Nio were down 2% in New York trading.