Nio Shares Tumble On Lower Q2 Delivery And Revenue Guidance

Shares of Nio were smacked significantly lower in the pre-market session, found some initial support but is fading back fast now (down over 7%), after the company’s forecast for Q2 deliveries fell short of average analyst expectations. 

The company said it sees deliveries at estimates of 23,000 to 25,000 for the quarter. This falls well short of the 28,220 consensus estimate. 

Nio also said it sees revenue for the quarter at 9.34 billion yuan to 10.09 billion yuan, another number that missed estimates. Analysts had expected guidance of 11.55 billion yuan. 

CEO William Li said: “Despite the volatilities of supply chain and the challenges in vehicle delivery resulting from the recent COVID-19 resurgence, we witnessed robust demand for our complementary products and achieved an all-time high order inflow in May 2022.”

For the company’s first quarter, revenue met estimates of 9.91 billion yuan and grew 24% year over year. The company’s adjusted loss of 79 RMB cents was narrower than the expected 98 RMB cents estimate. 

Gross margin fell short of expectations, coming in at 14.6% – down from last year’s 19.5% and missing estimates of 15.6%. 

Bloomberg had additional details of the company’s first quarter report:

  • Deliveries 25,768, +28% y/y, estimate 25,715

  • ES8 deliveries 4,341, estimate 4,463

  • ES6 deliveries 13,620, estimate 13,358

  • EC6 deliveries 163, estimate 7,692

  • Vehicle sales 9.24 billion yuan, estimate 9.03 billion yuan

  • Vehicle margin 18.1%, estimate 16.6%

  • Adjusted operating loss 1.72 billion yuan, estimate loss 1.85 billion yuan

  • Total operating expenses 1.85 billion yuan, estimate 3.62 billion yuan

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