registered Chinese company Nio A bigger-than-expected loss and a slower delivery pace Its electric cars (EV) in the current quarter, which led to a drop in its US-listed shares by 7% in extended dealings, according to Reuters.
Nio, which makes the ES8 and ES6 electric SUVs, said it expects to deliver 20,000 to 20,500 vehicles in the first quarter – up 15% to 18% from the fourth quarter.
However, the outlook is slower than the 42% growth that it reported between the third and fourth quarters, in line with the seasonal slowdown in auto sales in China in general.
And last April, Nio received a $ 1 billion financing injection from the Chinese government, which also helped the company tame recoveries and halt declining sales.
It still lags behind Tesla Inc, which dominates the electric vehicle market in China, and also faces competition from domestic competitors such as Xpeng Inc.
The company delivered 7,225 cars in January and 5,578 units last month, as factory activity in China expanded at the slowest pace in nine months due to weak external demand and the outbreak of the Corona virus, and by comparison, Tesla delivered 180,570 cars during the fourth quarter.
“In the first half of this year, we’d like to be more conservative,” Nio CEO William Lee said in a call with an analyst, citing battery suppliers’ limitations and the global semiconductor shortage that plagues most carmakers.
He said, “For the second half of this year, we are completely confident of the demand, but we do not have the full vision yet.”
He also told me that the company may launch a full-size car on the market, without providing details. Nio launched its first ET7 sedan in January.
Nio shares rose more than 10 times last year, as their market cap exceeded that of Detroit carmakers Ford and General Motors, as China led the global auto industry’s recovery from the pandemic. But as of last Monday’s close, its stock is up only 2% this year.
It reported a fourth-quarter net loss of 1.49 billion yuan ($ 230 million), compared to the average analyst estimate of a loss of 757 million yuan, according to Refinitiv data.