Employees stand next to an ET7 sedan at a NIO Inc. dealership in Shanghai, China, Wednesday, June 8, 2022.
Qilai Shen | Bloomberg | Getty Images
Chinese electric vehicle maker Nio lost $409.8 million in the second quarter, a significant increase in losses, despite deliveries that topped year-ago levels and beat its own forecast.
Here are the key numbers from Nio’s second quarter earnings report.
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- Revenue: $1.54 billion, compared to $1.31 billion in the second quarter of 2021.
- Adjusted loss per share: 20 cents, compared to 3 cents in the second quarter of 2021.
- Cash at end of quarter: $8.1 billion, down slightly from $8.4 billion as of March 31.
The company’s gross margin for the period was 13.0%, significantly lower than the reported gross margin of 14.6% last quarter and the 18.6% recorded in the second quarter of last year.
Its net loss for the period of $409.8 million marked a 50.4% increase from the first quarter and a 316.4% increase from the same period last year.
Shares of Nio fell nearly 6% in premarket trading on Wednesday as investors digested the report.
The company has been affected by “cost volatility” as it and its suppliers struggled to maintain production during Covid shutdowns in April and May, chief financial officer Steven Wei Fang said in a statement.
These cost pressures, along with increased spending on its charging and service networks, weighed on Nio’s gross margin.
The company previously said it delivered 25,059 vehicles in the second quarter, slightly less than the first quarter but above its own forecast.
The company was only able to deliver around 12,000 vehicles in April and May combined as Covid shutdowns hampered its production and supply lines. But it said in May it expected improvements in June and announced deliveries of between 23,000 and 25,000 vehicles for the quarter.
The company delivered 21,896 vehicles in the second quarter of last year.
CEO William Bin Li said in a statement Wednesday that the second half of 2022 was a “critical period” for the company. Deliveries of Nio’s new SUV, the ET7, hit full steam last month, he said, and production of the new ET5 sedan is expected to start in late September.
With production back at full capacity, Nio expects to deliver between 31,000 and 33,000 vehicles in the third quarter and generate revenues between $1.9 billion and $2 billion during the period.
This story is developing. Please check for updates.