Home Automobile Nio studies wider first-quarter loss as Covid shutdowns in China hamper deliveries

Nio studies wider first-quarter loss as Covid shutdowns in China hamper deliveries

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Nio studies wider first-quarter loss as Covid shutdowns in China hamper deliveries

Nio’s et5 electrical sedan is ready to start deliveries in Sept. 2022.

Nio

Chinese electric-vehicle maker Nio misplaced $281.2 million within the first quarter, wider than the $68.8 million it misplaced a yr in the past, because it scrambled to maintain tempo with intense demand amid China’s latest Covid-related shutdowns.

Here are different key numbers from Nio’s first-quarter earnings report.

  • Revenue: $1.56 billion, up 24% from the primary quarter of 2021.
  • Adjusted loss per share: 13 cents, versus 4 cents within the first quarter of 2021.
  • Gross margin: 14.6%, versus 19.5% a yr earlier and 17.2% within the fourth quarter of 2021.
  • Cash at quarter-end: $8.4 billion, down barely from $8.7 billion as of the top of 2021.

Nio’s shares have been down about 9% in early buying and selling Thursday as traders digested the decline in gross margin.

Rising commodity prices have continued to squeeze margins, CEO William Bin Li stated through the firm’s earnings name. But he expects Nio’s gross margin to start to get well within the third quarter as offsetting price cuts take maintain.

Nio stated its new manufacturing facility, the corporate’s second, has begun pre-production builds of the upcoming ET5 sedan, due in September. The firm additionally confirmed plans to launch a brand new upscale, five-passenger SUV, the ES7, later this month, with deliveries starting in August.

Nio delivered 25,768 automobiles within the first quarter, up from 20,060 a yr in the past. Second-quarter deliveries are on tempo to succeed in between 23,000 and 25,000 automobiles, the corporate stated, suggesting a very robust June. Covid-19 shutdowns and supply-chain points restricted Nio’s whole deliveries in April and May to simply over 12,000.

Demand has remained robust by means of China’s most up-to-date pandemic disruptions, nevertheless. Li stated Nio “achieved an all-time high order flow” in May.

This is breaking information. Please examine again for updates.

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