Considered one of China’s brightest electrical automobile startups, NIO (NIO), reported a wider-than-expected Q1 loss. Though NIO expects EV deliveries to greater than double in Q2, its inventory continues sliding.
NIO experiences Q1 2024 earnings outcomes
NIO delivered 30,053 automobiles within the first three months of 2024. Of them, 17,809 had been electrical SUVs, whereas 12,244 had been electrical sedans.
Though NIO crossed the 30K mark, deliveries fell 3.2% year-over-year (YOY) and 40% from This autumn 2023 (50,045). In consequence, NIO’s income fell 42% from the earlier quarter to $1,372 million (RMB 9,908.6 million).
NIO posted the next Q1 web loss than anticipated at $718.1 million (RMB 5,184.6 million). That’s up 9% YOY however down 3.4% from the $751.48 million (RMB 5,367.7 million) This autumn 2023 web loss.
The EV maker mentioned decrease Q1 EV deliveries had been anticipated earlier this yr after reducing steerage from 31,000 to 33,000 to 30,000. NIO ended up delivering simply over 30K automobiles in Q1.
Regardless of lacking steerage, the report had a number of shiny spots. For one, NIO’s margins are enhancing from final yr. NIO’s automobile margins reached 9.2%, up from 5.1% in the identical interval final yr.
Gross margins additionally improved to 4.9% from 1.5% in Q1 2023. Nonetheless, each figures had been down in comparison with final quarter.
NIO expects Q2 EV deliveries will greater than double
Regardless of the primary quarter miss, NIO expects issues to choose up. NIO tasks EV deliveries will surge to between 54,000 and 56,000 in Q2, representing 130% to 138% YOY progress.
Following the new 2024 ET7 launched in April (with a large 150 kWh semi-solid state battery), NIO’s lineup is now utterly refreshed. NIO expects the ET7 will rival luxurious automakers like BMW, Audi, and Mercedes-Benz.
NIO’s lineup now contains the refreshed 2024 ET5, ET5T, EC6, ES6, EC7, ET7, and ES8 because it enters Q2.
NIO additionally revealed its new Onvo mass-market model final month. The primary automobile, the Onvo L60 electrical SUV, will compete with Tesla’s Mannequin Y, NIO confirmed on its earnings name with traders.
Beginning at simply $30,500 (219,900 yuan), NIO’s new EV undercuts Tesla’s high vendor, which begins at 249,900 yuan ($34,600) in China.
A number of analysts consider the brand new electrical SUV may increase gross sales to over 20,000 per thirty days. Deutsche Financial institution analyst Wang Bin’s staff despatched a letter to traders saying, “We expect Nio’s expectation of month-to-month >20,000 unit supply is achievable with increase from Onvo.”
Subsequent yr, NIO will launch its second automobile underneath the Onvo model, a big electrical SUV for larger households. NIO mentioned on its earnings name that extra Onvo EVs are within the pipeline.
NIO sees a superb alternative for progress within the phase, with a market measurement of round 4 million. In the meantime, its third “Firefly” model is coming quickly as improvement progresses.
NIO already introduced a record-breaking Could, with 20,544 automobiles delivered, up 234% from final yr. With 66,217 automobiles handed over to date in 2024 (As of Could 31), NIO’s EV deliveries are up 51% YOY.
President and co-founder Qin Lihong confirmed NIO is constructing its third plant this week as the present two can now not sustain with demand.
Lihong informed Blue Whale Information (through CnEVPost) present manufacturing had reached its single-shift capability, including, “NIO doesn’t have an overcapacity drawback.”
Regardless of the upper expectations, NIO inventory is down practically 8% following its Q1 2024 earnings launch. NIO shares are down over 40% in 2024 and over 90% from their ATHs in February 2021.
What do you guys suppose will NIO decide it up in Q2 with new EVs hitting the market? Tell us within the feedback.
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