Nio Inc. (NYSE: NIO) beat market estimates for revenues in the second quarter of 2019 but net loss came in wider than expected. The consensus forecast was for a loss of $0.18 per share on revenue of $185 million. Shares were down 4% in premarket hours on Tuesday.
Total revenue was RMB1,508.6 million ($219.7 million) compared to RMB46 million in the same period last year.
Net loss attributable to ordinary shareholders was RMB3,313.7 million ($482.7 million), down 45.8% from the same period of 2018. Adjusted net loss attributable to ordinary shareholders was RMB3,189.9 million ($464.7 million).
Net loss per American depositary share (ADS) was RMB3.23 ($0.47). Adjusted diluted net loss per ADS was RMB3.11 ($0.45).
Vehicle sales during the quarter totaled RMB1,414.5 million ($206.1 million), compared to RMB44.4 million in the same period last year. Vehicle margin was negative 24.1%.
William Bin Li, Founder, Chairman and CEO said, “In response to the overall tempered market conditions, we are also working hard to maximize returns on our resources and have implemented comprehensive efficiency and cost control measures across the organization. These measures aim to further improve efficiency and streamline operations within our sales and service network and R&D activities. We target to reduce our global headcount to be around 7,800 by the end of the third quarter from over 9,900 in January 2019, and aim to further pursue a leaner operation through additional restructuring and spinning off some non-core businesses by year-end.”
In July, deliveries totaled 837 vehicles, consisting of 164 ES8s and 673 ES6s. The deliveries in the month were impacted by the voluntary battery recall for 4,803 ES8s, following which battery manufacturing capacity was given priority, thus affecting production and deliveries.
Deliveries in August were 1,943 vehicles, consisting of 146 ES8s and 1,797 ES6s. Deliveries of the ES8 and ES6 were 3,140 and 413, respectively in the second quarter of 2019.
For the third quarter of 2019, Nio expects vehicle deliveries to be between 4,200 and 4,400 units, up approx. 18.2% to 23.8% from the second quarter of 2019.
Total revenues are expected to be between RMB1,593 million ($232 million) and RMB1,663 million ($242.2 million), reflecting a sequential increase of approx. 5.6% to 10.3%.
Nio cancelled its second quarter 2019 earnings conference call which was set to take place at 8 am ET today. The company did not provide a reason.