Nio loss shrinks as electric SUVs make coronavirus comeback
CEO says current production constraints will be lifted in the near future
Nio Inc.’s loss narrowed as the world’s largest auto market reopened from its COVID-19 lockdowns.
The Shanghai-based electric-car maker’s second-quarter loss shrank to 1.2 billion Chinese yuan ($173 million) from 3.3 billion yuan the year prior as revenue surged 147 percent to 3.72 billion yuan. The loss, excluding some items, amounted to 16 cents a share, better than the $1.84 estimate from Wall Street analysts surveyed by Refinitiv.
“We achieved record-high quarterly deliveries of 10,331 ES8 and ES6 vehicles in total in the second quarter of 2020 and expect to deliver 11,000 to 11,500 vehicles in the third quarter as the momentum continues,” CEO William Bin Li said in a statement. “The current constraints on the productions will be lifted in the near future and we are confident that our production capacity can meet the accelerated demand of our models.”
Nio delivered 8,068 ES6 and 2,263 ES8 SUVs during the three months through June, and the momentum continued into July as a total of 3,533 ES8 and ES6 vehicles reached customers, up 322% from a year ago.
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The company said its existing working capital and the funds from Nio China and existing loan facilities will be enough to support operations for the next 12 months as it works toward profitability.
Looking ahead, Nio's projected third-quarter deliveries would mark a 140 percent year-over-year increase at the high end. The company expects revenue of 4.05 billion yuan to 4.21 billion yuan.
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Nio shares were up 253 percent from a year ago through Monday.