Chinese EV Maker Nio Sets Delivery Record, Cuts Losses

American depositary receipts (ADRs) of Nio (NIO) advanced Thursday as the Chinese electric vehicle (EV) maker reduced its losses and gave strong guidance as it set a record for deliveries.

Nio posted a second-quarter loss of 5.05 billion yuan ($694.4 million), 16.7% smaller than a year ago. Loss per share of 2.50 yuan was less than expected. Revenue soared 98.9% to 17.45 billion yuan, in line with forecasts.

Vehicle deliveries jumped 143.9% to 57,373, vehicle sales surged 118.2% to 15.68 billion yuan, and vehicle margin nearly doubled to 12.2%.

Nio Sees Q3 Deliveries Setting Another All-Time High

Founder and Chief Executive Officer (CEO) William Bin Li said Nio now has more than 40% of the market share in the battery electric vehicle (BEV) segment priced above 300,000 yuan ($42,327) in China, and it expects total delivery volume in the current quarter to set another all-time high, “further solidifying and expanding market share.” 

Li noted that already Nio delivered more than 20,000 EVs in both July and August, and the company is anticipating a third-quarter total of between 61,000 and 63,000 units. In addition, Nio sees revenue in a range of 19.11 billion yuan and 19.67 billion yuan, better than analysts’ estimates. 

Nio ADRs rose 6% to $4.50 soon after the opening bell Thursday but are down about 50% year-to-date.