Nio, which is a leader in China’s domestic automotive industry and viewed as a main rival to global electric vehicle leader Tesla (NASDAQ:TSLA) reported first-quarter results that missed Wall Street expectations and provided a downbeat outlook. The poor results citied ongoing Covid-19 lockdowns and deteriorating macroeconomic conditions globally as contributing factors. That news has further depressed NIO stock, extending its year-to-date decline to more than 40%. Here’s what investors need to known as Nio’s share price falls lower today.
NIO Stock Highlights
1. Nio lost $281.2 million in this year’s first quarter, much wider than the $68.8 million it lost a year ago. The company blamed the loss China’s recent Covid-related shutdowns, particularly in Shanghai where the company is based.
2. The EV maker reported Q1 revenue of $1.56 billion, which was up 24% from the first quarter of 2021. However, Nio also reported a loss per share for the quarter of 13 cents versus 4 cents a year earlier.
3. Perhaps worst of all, Nio said that its gross margin in the first quarter fell to 14.6%, compared to 19.5% a year earlier and 17.2% in the fourth quarter of last year. The company said that rising commodity costs continue to squeeze its margins.
4. At the end of March this year, Nio said it had $8.4 billion of cash on hand, down only slightly from $8.7 billion as of the end of 2021.
5. Apart from its Q1 print, Nio also announced that its new manufacturing plant, its second in China, has begun pre-production builds of its ET5 electric sedan which is due to hit showrooms in September this year.
6. Nio also confirmed the launch of its new upscale, five-passenger SUV, called the ES7, with deliveries slated to start this August.
7. In terms of deliveries, Nio said it delivered 25,768 vehicles in the first quarter, up from 20,060 a year ago.
8. Nio also reaffirmed that its second-quarter deliveries are on track to reach between 23,000 and 25,000 vehicles. However, the company cautioned that Covid-19 shutdowns and supply-chain issues restricted its production capacity and deliveries in April and May to just over 12,000 vehicles.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.