Nio's stock keeps climbing after upbeat outlooks for revenue and EV deliveries

By Tomi Kilgore

Stock is having its best day in nearly 2 years as the EV maker expects another quarter of record deliveries and projects a surprise increase in revenue

Shares of Nio Inc. were surging toward their best day in nearly two years, after the China-based electric vehicle maker provided an upbeat outlook for the current quarter, with deliveries to reach another record and revenue to surprisingly rise above forecasts.

The stock (NIO) shot up 13.3% toward a seven week high in afternoon trading, which puts it on track for the biggest one-day gain since it rocketed 21.7% on Nov. 30, 2022.

It was also headed for a fifth straight gain, which would be the longest such streak since the five-session stretch that ended May 2. The stock has soared 30.5% during its current win streak.

For the second quarter to June 30, Nio reported net losses that narrowed to RMB5.04 billion ($709.8 million), or RMB2.50 per American depositary share, from RMB5.79 billion, or RMB3.70 per ADS, in the same period a year ago.

Excluding nonrecurring items, adjusted per-ADS losses of RMB2.21 matched the FactSet consensus.

Total revenue jumped 98.9% to RMB17.446 billion ($2.46 billion), just shy of the FactSet consensus of RMB17.485 billion.

Deliveries soared 143.9% to a record 57,373 EVs, with the company securing more than 40% market share in the market for battery-electric vehicles priced above RMB300,000 ($42.275).

Vehicle margin improved to 12.2% from 6.2% a year ago, as lower material costs offset lower average selling prices.

"NIO's core competitive advantages in technology, product, service and community are earning increasing recognition from users, driving the continued strong vehicle sales performance," said Chief Executive William Bin Li.

With a total of 40,674 vehicles delivered in July and August, Nio expects delivery volume for the third quarter to "set another record" and market share to increase.

Nio expects to deliver between 61,000 and 63,000 EVs in the third quarter.

The company also projects revenue to be between RMB19.109 billion ($2.63 billion) and RMB19.669 billion ($2.71 billion), which is up from RMB19.067 billion and year ago and well above the current FactSet consensus for revenue of RMB18.129 billion.

Nio's stock, which has been bouncing off a four-year low of $3.67 hit on Aug. 7, has still tumbled 47% year to date, while the iShares MSCI China ETF MCHI has tacked on 1% and the S&P 500 index SPX has advanced 15.6%.

-Tomi Kilgore

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09-05-24 1449ET

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