Nio profit Q2 2023

Nio’s ET5 is on display at the Central China International Auto Show on May 25, 2023 in Wuhan, China.

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Chinese electric vehicle maker Nio lost $835.1 million in the second quarter, more than double its loss from a year ago, as deliveries of its luxury electric vehicles fell amid a transition to a refreshed vehicle platform and a broader economic slowdown in China.

Here are key numbers from Nio’s second-quarter earnings report, compared to Wall Street’s estimates as reported by Refinitiv.

  • Gain: 8.77 billion yuan ($1.21 billion), versus 9.25 billion yuan expected.
  • Adjusted loss per share: 3.28 yuan (45 cents), versus 2.45 yuan expected.

Shares of the company fell 9% in early trading following the news.

Nio’s adjusted figures exclude share-based compensation costs. On a GAAP basis, the company reported a net loss of $835.1 million, or 51 cents per share.

In Chinese yuan, the company reported a net loss of 6.06 billion, or 3.70 yuan per share. A year ago, Nio reported a net loss of 2.76 billion yuan, or 1.68 yuan per share, on sales of 10.29 billion yuan.

Nio’s gross margin on vehicles for the second quarter was 6.2% in the second quarter, down from 16.7% a year ago but up from 5.1% in the first quarter of 2023.

Nio launched a refreshed version of its flagship ES6 crossover on its new “NT2.0” platform in May, and a station wagon version of its ET5 sedan in June. The updated range is already delivering better results, with 20,462 vehicles delivered in July alone.

The company delivered just 23,520 vehicles in the second quarter, selling the last of its outgoing models at significant discounts.

CEO William Bin Li said in a statement that July’s result was enough to put Nio at the top of China’s electric car sales charts with a price above 300,000 yuan (about $41,000) for the month.

“We expect solid growth in vehicle deliveries in the second half of 2023,” he said.

Nio also strengthened its balance sheet in July, closing a $738.5 million equity investment from a fund controlled by the Abu Dhabi government on July 12. At the end of June, the company had $4.3 billion in cash and equivalents on hand.

Nio now expects to deliver between 55,000 and 57,000 vehicles in the third quarter, significantly more than the 31,607 electric vehicles it delivered in the third quarter of 2022. It expects sales for the period to fall between $2.61 billion and $2.69 billion, down from $1.83 billion. in the period of a year ago.

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