NIO: Set For More Short-Term Pain
@HenryHoward:
Shares of NIO (NYSE:NIO) dropped off after the electric vehicle maker reported earnings for the first-quarter last week. However, the EV start-up beat top line and EPS predictions despite growing production challenges in the first quarter. NIO’s outlook for the second-quarter disappointed, unfortunately, whichhelped create new obstacles for NIO’s shares in the short term. With inflationaccelerating again in May, shares of NIO are going to have a very hard time powering higher this year.Deteriorating unit economicsIn Q1’22, NIO had net sales of $1.56B, beating top line expectations by $80M. NIO’s non-GAAP loss was $0.13 per-share, which was$0.03 per-share better than expected.Despite the top line and EPS beat, the earnings card was not very impressive, and it showed multiple problems that N