Revenue growth
Other sales increased 15.6% to $105.1 million, driven mainly by higher sales of service and energy packages. Nio expects revenues for the second quarter of 2022 to increase approx. 10.6-19.4% to $1.47-1.59 billion.
Higher losses and lower margins
Nio reported net loss of $281.2 million in Q1 which was wider than the $68.8 million reported a year ago. However, net loss attributable to ordinary shareholders narrowed to $288 million from $744 million in the year-ago period. Adjusted net loss per ADS was $0.13 compared to $0.04 last year.
Gross margin dropped to 14.6% from 19.5% last year due to lower vehicle margin and a reduction in other sales margin due to increased investments in the power and service network. Vehicle margin decreased to 18.1% from 21.2% last year due to lower average selling price caused by changes in product mix.
The company is tackling rising material costs by adjusting product prices. With new product deliveries, higher revenue per vehicle and increasing production output, vehicle margin is expected to see a rebound from the third quarter of 2022.
Deliveries
Nio delivered 25,768 vehicles in Q1, up 28.5% year-over-year. The pandemic-related lockdowns in China affected the company’s vehicle production and deliveries during the quarter. Nio delivered 5,074 vehicles in April and 7,024 vehicles in May. Deliveries were back on track in June as vehicle production and the supply chain returned to normal. For the second quarter of 2022, Nio expects vehicle deliveries to range between 23,000 and 25,000, representing an increase of 5-14% YoY.