EV Automaker's Shares Jump 4% Despite Weaker Earnings

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Publication Type: ETP and Industry
EV Automaker's Shares Jump 4% Despite Weaker Earnings

Nio for Q3 FY23 reported revenue of 19.07 billion yuan ($2.7 billion) compared to 13.002 billion yuan in the same period last year up by 46.67% on a YoY basis. The increase in sales was attributed to the increased sales mix for higher-priced models, decreased parts costs, and improved economies of scale enabled by more deliveries combined with the refined management of sales policies the vehicle margin in the third quarter reached 11%. (Source: NIO)

The company reported a net loss of 4.6 billion yuan in the third quarter, down by 24.8% QoQ, however, it is still higher than the Q3 2022. (Source: NIO)

Nio for the September quarter reported vehicle sales of 17,408.9 million yuan (US$2,386.1 million) up by 45.9% YoY and 142.3% on a quarter-on-quarter (QoQ) basis. (Source: NIO)

Moreover, Nio's vehicle deliveries for Q3 2023 were 55,432 which includes 37,585 premium smart electric SUVs and 17,847 premium smart electric sedans, marking a surge of 75.4% compared to the same period in 2022 and a huge jump of 135.7% from the second quarter of 2023. (Source: NIO)

Nio reported Gross margin stood at 8% for the third quarter of 2023 as compared to 13.3% same period last year and a 1% increase on the QoQ basis. The changes in gross margin YoY and QoQ were mainly attributable to the changes in vehicle margin. (Source: NIO)

Nio's vehicle margins for Q3 2023 stood at 11%, compared with 16.4% in the Q3 of 2022 and 6.2% in the Q2 of 2023. The decrease in vehicle margin YoY was predominantly attributed to changes in product mix, partially offset by the decreased battery cost per unit. The increase in vehicle margin in QoQ was primarily due to changes in product mix, as well as decreased promotion. (Source: NIO)

For the third quarter of 2023, the company laid off 10% of its workforce in the previous month due to fierce competition. (Source: NIO)

Furthermore, with the Chinese electric vehicle (EV) market being increasingly competitive Nio is facing intense competition from other startups, like Li Auto and Xpeng, as well as EV giants such as Tesla and BYD. (Source: NIO)

For Q3 FY23 NIO launched the All-New EC6, a mid-sized coupe SUV upgraded to the second generation. The company also completed its product line-up on the NT2.0 platform. (Source: NIO)

For Q4 2023 the company expects total deliveries between 47,000 to 49,000, a hike of around 17.3% to 22.3%. Nio also expects revenue between 16.1 billion yuan and 16.7 billion yuan, marking a YoY increase of between 0.1% to 4.0%. (Source: NIO)

Moreover, in Q4, as the price war deepens and the competition gets tighter for Smart EVs NIO delivered a total of 32,000 and 33 vehicles in October and November up 32.2% from last year while maintaining our prices stable. (Source: NIO)

Nio's shares surged by 4% in early New York trading on December 5th after the company reported its third-quarter results. (Source: CNBC)

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