11.1 C
New York

Nio reports wider second-quarter loss despite increase in EV shipments

Published:

Employees stand next to a ET7 sedan at a NIO Inc. dealership in Shanghai, China, on Wednesday, June 8, 2022.

Qilai Shen | Bloomberg | Getty Images

Chinese electric vehicle maker Nio had a lack of $409.8 million within the second quarter, representing significantly widening losses, despite deliveries that surpassed year-ago levels and exceeded its own guidance.

Listed below are the important thing numbers from Nio’s second-quarter earnings report.

  • Revenue: $1.54 billion, vs. $1.31 billion within the second quarter of 2021.
  • Adjusted loss per share: 20 cents, vs. 3 cents within the second quarter of 2021.
  • Money at quarter-end: $8.1 billion, down barely from $8.4 billion as of March 31.

The corporate’s gross margin for the period was 13.0%, significantly lower than the 14.6% gross margin it reported last quarter and the 18.6% it saw within the second quarter of last yr.

Its net loss for the period of $409.8 million marked a rise of fifty.4% from the primary quarter and a rise of 316.4% from the identical period last yr.

Nio’s shares were down 5% in premarket trading Wednesday as investors digested the report.

The corporate was affected by “cost volatilities” because it and its suppliers scrambled to maintain production running through Covid shutdowns in April and May, Chief Financial Officer Steven Wei Fang said in a press release.

Those cost pressures, plus increased spending on its recharging and repair networks, dented Nio’s gross margin.

The corporate previously announced it delivered 25,059 vehicles within the second quarter, barely fewer than in the primary quarter but above its own guidance.

Nio was only capable of deliver about 12,000 vehicles in April and May combined as Covid shutdowns hampered its production and provide lines. But the corporate said in May that it expected improvements in June, and guided for deliveries between 23,000 and 25,000 vehicles for the quarter.

The corporate delivered 21,896 vehicles throughout the second quarter of last yr.

CEO William Bin Li said in a press release Wednesday that the second half of 2022 is a “critical period” for the corporate. Deliveries of Nio’s latest SUV, the ET7, hit full speed last month, he said, and production of the brand new ET5 sedan is on target to start at the tip of September.

With production back to normal, Nio expects to deliver between 31,000 and 33,000 vehicles within the third quarter and to generate revenue between $1.9 billion and $2 billion within the period.

sportinbits@gmail.com
sportinbits@gmail.comhttps://sportinbits.com
Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles

spot_img

Recent articles

spot_img