Nio Reports Robust Revenue for the Third Quarter as It Prepares for a Massive Year-end Production Drive

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Last Updated on November 11, 2022 by Bitfinsider

Despite good revenue as a result of a 29% rise in vehicle sales, Chinese electric vehicle manufacturer Nio announced a third-quarter loss of $577.9 million on Thursday, which was much larger than the same period last year.

Here are the major figures from Nio’s earnings report for the third quarter.

  • Revenue: $1.83 billion, up 32.6% from the third quarter of 2021.
  • Adjusted loss per share: 30 cents, versus 6 cents per share in the year-ago period.
  • Cash at quarter end:¬†$7.2 billion, down from¬†$8.1 billion as of June 30.

Nio announced on October 1 that it delivered 31,607 automobiles in the third quarter, a record for the company and a 29% increase from the third quarter of 2021.

Nio’s gross margin was 13.3%, a modest improvement over the 13.0% margin it posted in the second quarter, but a decrease from the gross margin of 20.2% a year earlier. Nio attributed the margin reduction to reduced sales of regulatory credits, greater costs that have compressed margins on its vehicles, and increased expenditures on its charging and support networks.

CEO William Bin Li stated in a statement that the company’s new ET5 car has generated significant demand, which he anticipates would “much accelerate our total revenue growth in the fourth quarter of 2022.” The ET5, the second sedan produced by the company, began delivery in September.

Li stated that now that the ET5 is available, Nio is working to improve production and decrease client wait times. Nio expects to deliver between 43,000 and 48,000 automobiles in the fourth quarter, producing between RMB17,368 million ($2.4 billion) and RMB19,225 million ($2.7 billion) in total revenue.

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