Tesla’s Chinese rival Nio cuts losses as revenue grows 127% – .

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Tesla’s Chinese rival Nio cuts losses as revenue grows 127% – .


Nio plans to start deliveries of its ET7 electric sedan in 2022.
Evelyne Cheng | CNBC
GUANGZHOU, China – Nio shares rose more than 1% in after-hours trading on Wednesday after the Chinese automaker posted a smaller-than-expected loss and increased revenue.
The startup lost 0.42 yuan (US $ 0.07) per share in the second quarter, less than the expected loss of 0.68 yuan, according to data from Refinitiv. This was less than the loss of 1.15 yuan per share recorded in the same period last year.

Meanwhile, revenue jumped 127.2 percent year-on-year to 8.45 billion yuan ($ 1.31 billion), more than the 8.32 billion yuan estimated by analysts.

Nio forecasts third-quarter revenue to be between 8.91 billion yuan and 9.63 billion yuan, an increase of about 96.9% to 112.8% from the same quarter of 2020.
The electric car maker said it delivered 21,896 vehicles in the second quarter, in its own previously reported range. For the third quarter, Nio plans to deliver between 23,000 and 25,000 vehicles.

Supply chain ‘uncertainties’

Nio and other electric car makers are facing headwinds due to the global shortage of chips that could weigh on production. In China, a resurgence of the coronavirus could potentially affect sales.
As the adoption of electric vehicles begins to reach a tipping point around the world, we believe it is imperative to accelerate the launch of new products to provide more high-end intelligent electric vehicle offerings …
“The problem for Nio, for Tesla, for others, every car they make, they sell. It’s really the production and the shortage of chips, and… the space, ”Daniel Ives, managing director of Wedbush Securities, told CNBC’s“ Squawk Box Asia ”Thursday.

William Bin Li, CEO of Nio, said in a statement that whether the global supply chain “still faces uncertainties.” The company has “worked closely” with its partners to “improve the overall production capacity of the supply chain,” he said.

Nio faces increased competition from other electric vehicle start-ups in China, including Li Auto and Xpeng, as well as incumbent Tesla.

Nio, listed in the United States, said it delivered 7,931 vehicles in July, lower than Li Auto and Nio.

New models next year

Nio, which makes the EC6, ES6 and ES8 SUVs, is also preparing to begin deliveries of its first sedan, the ET7, next year.

“As the adoption of electric vehicles begins to reach a tipping point around the world, we believe it is imperative to accelerate the launch of new products to provide more high-end intelligent electric vehicle offerings with holistic services superior to the growing user base in the global market, ”Li said.

The company aims to deliver three new products next year, including the ET7, he added.

Nio has tried to differentiate itself from its competitors through its battery exchange service. Nio users can go to special petrol stations to exchange their exhausted battery for a fully charged battery.

Ives said this was one of the reasons he was bullish on Nio’s shares.

“For Nio, the key to success is really going to be battery technology. I think they have massive innovations on the horizon, ”Ives said.

“And I think that’s the one that when we look over the next couple of years, alongside the stock which I think is going to go up tremendously, I think the market share can potentially double. “

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