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

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Nio’s et5 electric sedan is set to begin deliveries in Sept. 2022.

Chinese electric-vehicle maker Nio lost $281.2 million in the first quarter, wider than the $68.8 million it lost a year ago, as it scrambled to keep pace with intense demand amid China’s recent Covid-related shutdowns.

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

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

Nio’s shares were down about 6% in premarket trading Thursday.

Nio said its new factory, the company’s second, has begun pre-production builds of the upcoming ET5 sedan, due in September. The company also confirmed plans to launch a new upscale, five-passenger SUV, the ES7, later this month, with deliveries beginning in August.

Nio delivered 25,768 vehicles in the first quarter, up from 20,060 a year ago. Second-quarter deliveries are on pace to reach between 23,000 and 25,000 vehicles, the company said, suggesting a particularly strong June. Covid-19 shutdowns and supply-chain issues limited Nio’s total deliveries in April and May to just over 12,000.

Demand has remained strong through China’s most recent pandemic disruptions, however. CEO William Li said in a statement that Nio “achieved an all-time high order flow” in May.

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