Chinese electric vehicle manufacturer Nio announced its second quarter results which exceeded analysts’ estimates. Revenue increased, and net losses narrowed mainly due to growth in sales. The company plans to introduce three new car models in 2022, CEO William Li said on Thursday.
The Shanghai-based EV maker logged RMB 8.5 billion (USD 1.3 billion) in quarterly revenue, up 127.2% from the same period last year and 5.8% more than Q1 2021. This beat analysts’ expectations of RMB 8.3 billion, according to data compiled by Visible Alpha.
Nio suffered net losses to the tune of RMB 587.2 million (USD 90.9 million), which is around half the amount from the same period in 2020 but 30.2% higher than the previous quarter.
The EV maker delivered 21,896 vehicles in the second quarter, including 4,433 ES8 SUVs, 9,935 ES6 SUVs, and 7,528 EC6 coupes, an overall increase of 112% from 12 months prior when China was emerging from the initial COVID-19 outbreak. Nio’s shipments for the second quarter were at the high end of the company’s forecast of 21,000 to 22,000. Nio expects to deliver 23,000 to 25,000 units in the third quarter, despite the ongoing global chip shortage that has plagued the automobile manufacturing industry.
Founder and CEO William Li said the effect of the chip shortage is “under control,” and that Nio will work closely with its partners to improve the production capacity of its supply chain. He added that the company plans to deliver three new models in 2022, including the ET7, a flagship premium electric sedan. The other two models’ pricing will be slightly lower than Nio’s existing vehicles.
Li indicated that the vehicles of Nio’s new sub-brand will not be as cheap as Wuling Hongguang, which was designed for the low-end market. “Basically, we aim to offer the car at a price competitive to Tesla, but with even better quality and services,” he added. Last month, Nio appointed a former WeWork executive, Ai Tiecheng, to lead the new business unit.
At the time of publishing, the company’s shares dropped 0.59% in post-market trading on the New York Stock Exchange. Over the past year, Nio’s share price has dropped about 9%, trailing previous gains of 18% and 15% in the S&P 500 and Dow Jones Industrial Average stock indexes.