Home / Money / Nio stock slips after Q1 results on supply chain, chip lack

Nio stock slips after Q1 results on supply chain, chip lack

Nio Inc. late Thursday reported quarterly outcomes and sales that were above Wall Street expectations, but renewed financiers’ issues about its supply chain and impact of the chip shortage plaguing the Chinese electric-car maker and other auto makers around the world.

Nio NIO, -5.34% said it lost RMB4.88 million ($ 744.1 million), or 48 cents per American Depositary Receipt, in the first quarter, compared with a loss of RMB1.72 million in the year-ago period.

Changed for stock payment costs and other one-time items, Nio lost 4 cents per ADR.

Sales reached RMB7.98 billion, or $1.22 billion, up 481% year-on-year, mainly thanks to expanding deliveries from a small base in 2015 and a “strong typical market price,” the business stated. Car margin reached 21.2% in the quarter, Nio stated.

Experts polled by FactSet had expected a loss around 10 cents per ADR and sales of $1.06 billion. The ADRs fell around 1% immediately after the outcomes, and ended the regular trading day down 5%.

Previously today, Tesla Inc. TSLA, -2.51% and Ford Motor Co. F, -9.41% reported first-quarter incomes and called attention to the continuous chip scarcity, which Ford stated would “worsen before it improves.”

“The overall need for our items continues to be quite strong, however the supply chain is still dealing with considerable obstacles due to the semiconductor scarcity,” Chief Executive William Li stated in a declaration.

Nio stated it delivered 20,060 vehicles in the first quarter, a boost of 423% from the very first quarter of 2020 and a rise of nearly 16% from the fourth quarter.

It called for the delivery of between 21,000 and 22,000 automobiles in the 2nd quarter, with sales in between $1.24 billion and $1.29 billion.

Nio will continue to invest “in brand-new products and core innovations, along with in our service and power-network expansion, especially battery swapping and charging facilities,” it stated.

About Jamie Singh

Check Also

J.P. Morgan: 3 Stocks That Could Climb up Over 60%

We’re well into profits season, and the aggregate business incomes are beating expectations once again. …