Chinese EV maker attributes weak results to seasonal effects and weaker prices

  • NIO’s net loss widened to CNY5.26 billion in Q1
  • Revenue fell 7.2% to CNY9.91 billion, missing estimates
  • Delivered 30,053 vehicles, down 3.2% YoY
  • Expects deliveries of 54,000-56,000 units in Q2 and revenue of CNY16.59-CNY17.14 billion
  • Gross margin rose to 4.9%, lower than Q4’s 7.5% due to promotions and product mix changes

NIO, a Chinese electric-vehicle maker, reported a widened net loss of CNY5.26 billion in the first quarter compared to CNY4.80 billion a year earlier. Quarterly revenue fell by 7.2% to CNY9.91 billion, missing estimates. The company delivered 30,053 vehicles, down 3.2% from last year. Despite these results, NIO expects deliveries of 54,000-56,000 units and revenue of between CNY16.59 billion and CNY17.14 billion in the second quarter. The company attributes the weak performance to seasonal effects and weaker average selling prices. NIO’s gross margin rose to 4.9% from 1.5% a year earlier, but was lower than Q4’s 7.5% due to promotions and changes in product mix.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about NIO’s financial performance, including net loss, revenue, vehicle sales, and guidance for future quarters. It also compares the company’s gross margin with its rivals. However, it could provide more context on the overall EV market situation in China and the factors affecting NIO’s performance beyond seasonal effects.
Noise Level: 3
Noise Justification: The article provides relevant information about NIO’s financial performance and market conditions but lacks in-depth analysis or context on the broader electric vehicle industry trends and comparisons with other companies. It also does not offer much actionable insights for readers.
Public Companies: NIO (NIO), Li Auto (N/A), BYD (N/A), XPeng (N/A)
Key People: Jiahui Huang (N/A)

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Financial Relevance: Yes
Financial Markets Impacted: Chinese EV market
Financial Rating Justification: The article discusses NIO’s financial results, including net loss and revenue, as well as the impact of seasonal effects on vehicle sales in the Chinese electric-vehicle market. It also mentions the company’s forecast for future deliveries and revenue, which could affect the stock price and investor sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The company’s financial performance and sales are discussed, but it does not reach the level of a crisis or disaster.

Reported publicly: www.wsj.com