Employees stand next to an ET7 sedan at a NIO Inc. dealership in Shanghai, China on Wednesday, June 8, 2022.
Qilai Shen | Bloomberg | Getty Images
Chinese electric vehicle maker Nio posted a loss of $ 409.8 million in the second quarter, which represents a significant increase in losses, despite deliveries that surpassed levels of a year ago and surpassed their own guidance.
Here are the key numbers from Nio’s second quarter earnings report.
- Income: $ 1.54 billion, compared to $ 1.31 billion in the second quarter of 2021.
- Adjusted loss per share: 20 cents, compared to 3 cents in the second quarter of 2021.
- Cash at the end of the quarter: $ 8.1 billion, down slightly from $ 8.4 billion as of March 31st.
The company’s gross margin for the period was 13.0%, significantly lower than the gross margin of 14.6% recorded last quarter and 18.6% recorded in the second quarter of last year.
Its net loss for the period of $ 409.8 million marked a 50.4% increase over the first quarter and a 316.4% increase over the same period last year.
The company was affected by “cost volatility” as she and her suppliers rushed to keep production running during closures due to Covid in April and May, CFO Steven Wei Fang said in a statement.
These cost pressures, plus increased spending on its charging and service networks, dented Nio’s gross margin.
The company previously announced that it had delivered 25,059 vehicles in the second quarter, slightly less than in the first quarter but above its forecast.
Nio was only able to deliver around 12,000 vehicles in April and May combined, as outages due to Covid hampered its production and supply lines. But the company said in May it expected improvements in June and drove for deliveries between 23,000 and 25,000 vehicles for the quarter.
The company delivered 21,896 vehicles during the second quarter of last year.
CEO William Bin Li said in a statement Wednesday that the second half of 2022 is a “critical period” for the company. Deliveries of Nio’s new SUV, the ET7, hit top speed last month, he said, and production of the new ET5 sedan is on track to begin in late September.
With production back to normal, Nio expects to deliver between 31,000 and 33,000 vehicles in the third quarter and generate between $ 1.9 billion and $ 2 billion in revenue over the period.