NIO (NYSE: NIO) stock dropped during intraday trading Thursday after the EV maker reported lower-than-expected first-quarter results.
NIO reported its first-quarter results, which disclosed a year-on-year decline in vehicle deliveries and revenue that fell short of analysts’ estimates. The company delivered 30,053 vehicles in Q1, aligning with its downwardly revised forecasts from March but slightly lower than the 31,041 vehicles delivered in the same period last year.
The decline in vehicle deliveries was accompanied by a corresponding drop in revenue, which amounted to 9.91 billion Chinese yuan ($1.37 billion), down 7% from the previous year. Based on consensus estimates compiled by Visible Alpha, analysts had anticipated revenue to remain flat at 10.61 billion yuan.
NIO attributed the revenue shortfall to fewer deliveries and a lower average selling price as the EV industry in China continues to adjust prices to stay competitive against domestic and international automakers, including Tesla (NASDAQ: TSLA).
In addition, the company reported a loss of CNY5.18 billion for the quarter, marking a more than 9% increase from the previous year and above analysts’ estimates of a CNY4.48 billion loss. On a per-share basis, NIO incurred a loss of 2.57 yuan, more than the 2.31 yuan analysts anticipated.
Upbeat Q2 Deliveries and Revenue Guidance
Despite the disappointing first-quarter results, NIO provided an optimistic outlook for the second quarter. The company sold over 36,000 vehicles in the first two months of Q2, surpassing the total deliveries for Q2 2023, which stood at 23,520. For the complete second quarter, NIO forecasts deliveries to more than double from last year, reaching between 54,000 and 56,000 vehicles.
In terms of revenue, NIO expects a nearly twofold increase, expecting a range of CNY16.59 billion to CNY17.14 billion, compared to the second quarter of last year, when revenue amounted to CNY8.77 billion. Analysts, however, have a more conservative estimate, forecasting second-quarter revenue of CNY14.59 billion.
NIO (NYSE: NIO) Stock Reaction
On Thursday, NIO stock plunged 6.83%, closing at $4.91, marking a 9.07% decrease for the week. The trading volume was 83,411,775 shares, significantly higher than the average daily volume of 55.28 million.
