Nio reports wider second-quarter loss despite increase in EV shipments

Employees stand subsequent to a ET7 sedan at a NIO Inc. dealership in Shanghai, China, on Wednesday, June 8, 2022.

Qilai Shen | Bloomberg | Getty Images

Chinese electrical car maker Nio had a loss of $409.8 million in the second quarter, representing considerably widening losses, despite deliveries that surpassed year-ago ranges and exceeded its personal steerage.

Here are the important thing numbers from Nio’s second-quarter earnings report.

  • Revenue: $1.54 billion, vs. $1.31 billion in the second quarter of 2021.
  • Adjusted loss per share: 20 cents, vs. 3 cents in the second quarter of 2021.
  • Cash at quarter-end: $8.1 billion, down barely from $8.4 billion as of March 31.

The firm’s gross margin for the interval was 13.0%, considerably decrease than the 14.6% gross margin it reported final quarter and the 18.6% it noticed in the second quarter of final yr.

Its web loss for the interval of $409.8 million marked an increase of fifty.4% from the primary quarter and an increase of 316.4% from the identical interval final yr.

The firm was affected by “cost volatilities” because it and its suppliers scrambled to maintain manufacturing operating by way of Covid shutdowns in April and May, Chief Financial Officer Steven Wei Fang stated in a press release.

Those price pressures, plus elevated spending on its recharging and repair networks, dented Nio’s gross margin.

The firm beforehand introduced it delivered 25,059 automobiles in the second quarter, barely fewer than in the primary quarter however above its personal steerage.

Nio was solely capable of ship about 12,000 automobiles in April and May mixed as Covid shutdowns hampered its manufacturing and provide strains. But the corporate stated in May that it anticipated enhancements in June, and guided for deliveries between 23,000 and 25,000 automobiles for the quarter.

The firm delivered 21,896 automobiles through the second quarter of final yr.

CEO William Bin Li stated in a press release Wednesday that the second half of 2022 is a “critical period” for the corporate. Deliveries of Nio’s new SUV, the ET7, hit full pace final month, he stated, and manufacturing of the brand new ET5 sedan is on observe to start on the finish of September.

With manufacturing again to regular, Nio expects to ship between 31,000 and 33,000 automobiles in the third quarter and to generate income between $1.9 billion and $2 billion in the interval.

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