Deliveries of the Nio et5 electric sedan will begin in September 2022.
Chinese electric car maker Nio lost $281.2 million in the first quarter, more than the $68.8 million it lost a year ago as it struggled to keep up with strong demand amid recent shutdowns in China related to Covid.
Here are other key figures from Nio first quarter income statement.
- Income: $1.56 billion, up 24% from the first quarter of 2021.
- Adjusted loss per share: 13 cents vs. 4 cents in the first quarter of 2021.
- Gross profit: 14.6% vs. 19.5% a year earlier and 17.2% in the fourth quarter of 2021.
- Cash at the end of the quarter: $8.4 billion, down slightly from $8.7 billion at the end of 2021.
Nio’s shares fell about 9% in early trading on Thursday as investors digested the decline in gross margins.
Rising commodity prices continue to push margins down, CEO William Bin Lee said during the company’s earnings announcement. But he expects Nio’s gross margin to start to recover in the third quarter as cost cuts offset it.
Nio said its new factory, the company’s second, has begun pre-production assembly of the upcoming ET5 sedan, due in September. The company also confirmed plans to launch a new high-end ES7 five-seater SUV later this month, with deliveries starting in August.
In the first quarter, Nio delivered 25,768 vehicles, up from 20,060 a year earlier. The company said second-quarter deliveries should be between 23,000 and 25,000 vehicles, assuming a particularly strong June. Covid-19 shutdowns and supply chain issues have limited Nio’s total shipments in April and May to just over 12,000.
However, demand remained strong due to recent disruptions due to the pandemic in China. Li said Nio “reached an all-time high in order flow” in May.
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