Nio shares fell further below key levels on Tuesday with child (LITTLE BOY) second quarter earnings are due early Wednesday.
Nio’s electric vehicle deliveries increased 14% year-over-year in the second quarter. But they slowed in July and August versus June, so outlook will be key.
China’s once-red-hot electric vehicle startup has seen headwinds grow. Those headwinds include new export curbs in nvidia (NVDA), a supplier of Nio chips. It also includes fierce new competition and new Covid-19 lockdowns in China.
Investors will be eager to learn how Nio navigates through persistent supply challenges as it pursues ambitious growth strategies. the emergent Tesla (TSLA) rival is launching several new electric vehicles, expanding abroad and aiming for a foray into the mass market.
Dear All: Analysts surveyed by FactSet expect the net loss to widen to 16 cents per American Depositary Share from 6 cents a year ago. Revenue is forecast to grow 8.5% to $1.415 billion, below the low end of Nio’s Q2 guidance range.
Results: Check back early Wednesday for Nio earnings.
panorama: Nio is likely to share Q3 delivery and revenue guidance. Wall Street expects third-quarter revenue of $2.38 billion, an increase of 55% year over year.
Nio shares fell 2.6% to 17.27 in the stock market today. Nio shares found resistance at the 50-day moving average in late August and remain well below the 200-day moving average. China electric vehicle stocks are 61% below a 52-week high, with one line RS lagging.
startup rivals li car (LI) Y Xpeng (XPEV) also fell on Tuesday. Shares of Li Auto fell to a three-month low, while shares of XPEV sank 4% to a record low. The Chinese giant of electric vehicles BYD (BYDDF) rallied 1.2% on Tuesday, following a four-session drop as Warren Buffett sold a small amount of his large holding. Tesla shares rose 1.4%, again above its 50-day moving average, as it struggles for support there.
Nio EV sales, growth strategies
Founded in November 2014, Nio targets the Chinese premium electric car market. As of August, it had produced and sold nearly a quarter of a million electric vehicles cumulatively.
Electric vehicle sales more than doubled for Nio, and for China as a whole, in 2021. But persistent chip shortages and other supply disruptions hit electric vehicle production and sales earlier this year.
Nio sold 25,059 EVs in the second quarter, roughly in line with the high end of its delivery guidance. It sold 10,052 EVs in July and 10,677 EVs in August, both below June’s level.
But the EV startup increased deliveries in August compared to the previous month, outpacing Xpeng and Li Auto, which reported declines.
In July, a shortage of castings hurt production of Nio electric vehicles, including the new flagship ET7 electric sedan. But Nio started delivering the ES7 SUV on August 28 and plans to launch the smaller ET5 sedan on September 30.
In addition to a growing lineup of electric vehicles, Nio plans to expand abroad, shipping the luxurious ET7 to Europe. It already sells electric vehicles in Norway and aims to be in 25 countries by 2025.
Various reports suggest that Nio could launch a mass-market electric vehicle, challenging the likes of Volkswagen (VWAGY) in China.
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