Nio Inc. (NYSE: NIO) beat revenue estimates and reported a narrower-than-expected loss for the third quarter of 2019, sending the stock soaring over 14% in premarket hours on Monday. Analysts had forecast a loss of $0.34 per share on revenue of $230 million.
Total revenues of RMB1,836.8 million ($257 million) were up 25% from the same period last year.
Net loss attributable to Nio’s ordinary shareholders was RMB2,553.6 million ($357.3 million), down 73.8% from last year. Adjusted net loss was RMB2,451.3 million ($342.9 million).
Net loss per American depositary share (ADS) was RMB2.48 ($0.35). Adjusted net loss per ADS was RMB2.38 ($0.33).
Vehicle sales were RMB1,733.5 million ($242.5 million) in the quarter, reflecting an increase of 21.5% from the prior-year quarter. Vehicle margin was a negative 6.8% compared with a negative 4.3% last year.
Deliveries of vehicles were 4,799 in the third quarter including 4,196 ES6s and 603 ES8s, versus 3,553 vehicles delivered in the second quarter.
William Bin Li, Founder, Chairman and CEO, said, “The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China. Despite the challenges, NIO’s sales improved solidly since September. Our strong performance was attributable to the competitiveness of our products and services, the recognition and strong support from our user community, and our sales network expansion strategy as we continue to launch more efficient NIO Spaces.”
For the fourth quarter of 2019, total revenues are expected to be approx. RMB2,810 million ($393.2 million), up approx. 53% from the third quarter. Total vehicle deliveries are expected to be over 8,000 units, up over 66.7% from the third quarter.