Chinese electric vehicle (EV) producer, Nio, disclosed its Q1 results, which were lower than initially forecasted. This includes a wider loss and a shortfall in revenue, leading to a decrease in the company's American depositary receipts (ADRs) ahead of market opening. This year's Q1 saw 30,053 vehicle deliveries by Nio, matching the downwards revised predictions made in March. This is a slight fall compared to Q1 of 2023, which saw 31,041 deliveries. Consequently, Nio's revenue also dropped to 9.91 billion Chinese yuan ($1.37 billion), a 7% decrease from last year and below the projected CNY10.61 billion. Factors such as lower average selling price and fewer deliveries contributed to the dip in revenue, reflecting the industry-wide price adjustments in the Chinese EV sector for both local and international competitors including Tesla. Furthermore, Nio reported a loss of CNY5.18 billion, which was 9% higher than a year ago and wider than the speculated CNY4.48 billion loss. On a per-share basis, Nio recorded a loss of CNY2.57, exceeding the anticipated CNY2.31. Despite the Q1 setback, Nio has shown promising signs for the current quarter, with vehicle sales exceeding 36,000 in the first two months, surpassing Q2 of 2023's total sales of 23,520 vehicles. Nio expects the total deliveries to more than double for this quarter, projecting between 54,000 and 56,000 vehicles. Revenue is also forecasted to nearly double, ranging from CNY16.59 billion to CNY17.14 billion, significantly more than the CNY8.77 billion generated the same quarter of the previous year, surpassing the anticipated CNY14.59 billion. Nevertheless, following the Q1 results, Nio's ADRs fell by 3.8% to $5.07, a cumulative decline of nearly 45% for the year.
Nio's Q1 Report Reveals Below-Expected Result and Predicts Significant Q2 Growth
Despite Nio's Q1 falling short of expectations, the EV maker predicts a considerable surge in Q2 deliveries and revenues.
