EV Stock NIO Drops After Q1 Print, What's Going On?

Benzinga06-06

Chinese electric vehicle startup NIO, Inc (NYSE: NIO) reported fiscal first-quarter 2024 revenue of 9.91 billion yuan ($1.37 billion), down by 7.2% year-over-year and down by 42.1% from the previous quarter. Analysts, on average, estimated revenue of $1.48 billion for the quarter.

Excluding share-based compensation expenses, the company reported an adjusted loss per share/ADS of (2.39) yuan or ($0.33) compared to (2.51) yuan in the year-ago quarter and (2.81) yuan in the fourth quarter of 2023. Analysts had called for a loss of $(0.31) per share. The stock price declined after the print.

Also Read: Nio, XPeng, and Li Auto See Major Sales Growth in May, Attracting Investor Interest

Vehicle deliveries were 30,053 in the quarter, down by 3.2% Y/Y and down by 39.9% Q/Q. Consequently, vehicle revenue were down by 9.1% Y/Y and down by 45.7% Q/Q.

Nio delivered 15,620 vehicles in April 2024 and 20,544 vehicles in May 2024. As of May-end, the cumulative number of NIO vehicle deliveries reached 515,811.

Gross margin for the quarter expanded to 4.9%, up from the year ago's 1.5% and down from the previous quarter's 7.5%, as vehicle margin expanded from 5.1% a year ago to 9.2%. 

Cash and cash equivalents, restricted cash, short-term investment, and long-term time deposits were 45.3 billion yuan ($6.3 billion) as of March 31, 2024.

NIO's Forward Outlook: The company guided deliveries of 54,000 – 56,000 units for the second quarter, or 129.6% – 138.1% Y/Y. 

The company expects second quarter revenue of $2.297 billion – $2.373 billion, representing 89.1% – 95.3% Y/Y growth.

Nio stock lost over 33% in the last 12 months. Investors can gain exposure to NIO via iShares Core MSCI Emerging Markets ETF (NYSE:IEMG) and iShares MSCI China ETF (NASDAQ:MCHI).

Price Action: NIO shares traded lower by 5.88% at $4.96 premarket at the last check Thursday.

Also Read: NIO, BYD Receive Beijing’s Approval For Autonomous Driving Tests Amid Tesla’s FSD Launch Aspirations In China

Photo by Sundry Photography on Shutterstock

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