NIO Inc. (NYSE: NIO) stock slipped over 2% on Wednesday after the company announced a cut in first-quarter delivery forecast.
NIO has announced a downward revision to its first-quarter delivery forecast, citing waning demand and intensified pricing competition in China.
The company now anticipates delivering around 30,000 vehicles during the quarter. This revision represents a decrease from the previous forecast range of 31,000 to 33,000 vehicles.
However, NIO refrained from commenting on its previously disclosed first-quarter revenue target, which ranged from $1.48 billion to $1.56 billion, representing a year-over-year growth of (1.7)% to 3.8%.
In its fourth-quarter report released earlier this month, NIO revealed a 9.7% decline in vehicle deliveries compared to the third quarter, amounting to 50,045 units. As a result, vehicle revenue tumbled 11.3% quarter-over-quarter.
Eunice Lee, an analyst at Bernstein, highlighted concerns regarding NIO’s market share, noting a contraction from around 5% in 2021 to about 2% presently, despite the expansion of the company’s portfolio from three to eight models.
The analyst wrote,
“The 2024 model cycle appears challenging.”
Moreover, NIO recently announced a strategic partnership with battery giant CATL to develop batteries with extended lifespan to reduce overall EV charging costs. The collaboration aims to leverage the combined battery technologies of both companies to optimize the “full life circle” costs, which holds particular significance for NIO’s extensive network of battery swapping and charging stations, Li stated.
NIO Inc. (NYSE: NIO) Stock Performance
NIO stock fell 2.30% to close at $4.67 on Wednesday. The traders had exchanged hands with 84,843,166 (84.84 million) shares compared to the average daily trading volume of 59.50 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
