NIO sees record revenue growth in Q3 on strong vehicle deliveries

Highlights

• NIO’s total revenues were RMB 9,805.3 million or US$1,521.8 million in the quarter, an increase of 116.6% from the same period a year ago.
  
  
• NIO’s vehicle sales were RMB 8,636.8 million or US$1,340.4 million in the quarter, up 102.4% from the corresponding period of 2020.
  
  
• CEO William Bin Li said the company is accelerating technology development to introduce three new products in 2022 to lead the smart EV transformation.

Chinese electric vehicle maker NIO Inc. (NYSE:NIO) on Tuesday reported a record third-quarter revenue of RMB 9,805.3 million or US$1.52 billion, helped by strong vehicle deliveries.

However, the stock was down 0.62% to US$40.39 in the after-hours trading session at 6:36 pm ET.

Founder and CEO William Bin Li said vehicle deliveries hit an all-time high of 24,439 units in the quarter as demand continues to grow. In addition, he said new orders reached a record high in October.

Li said the company is accelerating technology development to introduce three new products in 2022 to lead the smart EV transformation.

On his part, CFO Steven Wei Feng said NIO achieved a record vehicle margin of 18.0% and a gross margin of 20.3% in the quarter. He said NIO will continue its expansions in new markets.

Third-Quarter Highlights

NIO’s total revenues were RMB 9,805.3 million or US$1,521.8 million in the quarter, an increase of 116.6% from the same period a year ago and a 16.1% increase from the previous quarter.

It delivered 24,439 vehicles in the quarter, covering all three - ES8, ES6, and EC6.

The vehicle deliveries were up 100.2% from the year-ago quarter.

NIO’s vehicle sales were RMB 8,636.8 million or US$1,340.4 million in the quarter, up 102.4% from the corresponding quarter of 2020. The vehicle margin was 18.0% against 14.5% in Q3 of 2020.

The Shanghai-based NIO’s gross profit was RMB 1,993.2 million or US$309.3 million in the quarter, up 240.3% from a year ago. In addition, the gross margin rose to 20.3% from 12.9% in Q3 of 2020.

The company’s net loss was RMB 835.3 million or US$129.6 million in the quarter, representing a decline of 20.2% from the same period of 2020.

Its net loss attributable to ordinary shareholders was RMB 2,858.9 million or US$443.7 million in the quarter, up 140.7% from the same period of 2020. NIO’s cash and cash equivalents, restricted cash and short-term investment were RMB 47.0 billion or US$7.3 billion as of Sep 30, 2021.

NIO’s vehicle delivery declined in October due to production cuts resulting from restructuring, the upgradation of assembly lines, and supply chain volatilities. The production fell by 27.5% YoY to 3,667 vehicles in October. However, it booked a record number of new orders in the month.

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Source: Pixabay

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Stock Update

The stock was up 1.00% to US$43.63 in the premarket at 7:56 am ET on Tuesday. Its price is down about 17% YTD. Its 52-week highest and lowest prices were US$66.99 and US$30.71, respectively.

In addition, its forward P/E one-year ratio is -54.68, and the EPS is US$-0.85.

NIO’s current market cap is about US$70.78 billion.

Bottomline

Analysts forecast that passenger EV car sales are on track to top five million units this year. If they do, it will represent a growth rate of 86% since 2011, an astonishing feat for the industry, they said.

However, China remains the world’s top EV market, followed by the US and Europe. According to industry experts, EV sales jumped 160% in 2021, accounting for 26% of new auto sales globally. However, investors must evaluate the companies carefully before investing in stocks.