Important events
Nov 112022
A sigh of relief
EV makers around the world have posted a mixed bag of earnings and Nio’s production push helps add its report to the success column.- Nio’s wider-than-expected loss was outweighed by its positive revenue and forecast, leading to a good day all round for its investors. The China-based EV maker reported LPS of $0.30 compared to $0.06 the year before, but boasted a 32.6% increase in revenue to come in at $1.83bn.
- The brand hasn’t escaped higher costs and cash flow declined from $8.1bn as of June 30 to $7.2bn. Those costs have eked into other areas of the balance sheet and meant that Nio’s gross margin of 13.3% was down from 20.3% a year ago, though slightly improved on last quarter’s 13%.
- Impressive delivery numbers and a production push earned cheers from investors and an 11% increase in Nio stock on Thursday. The company delivered 31.6k cars in the quarter, a lot higher than October as the impact of parts shortages lessens, and expects to deliver up to 48k cars in Q4, generating revenue of up to $2.7bn.
NIO
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Jun 302022
A Grizzly situation
Chinese EV leader Nio is trying to navigate its way around accusations of financial foul play.- Grizzly Research threw Nio under the bus (or EV rather) on Tuesday. The short-seller published a report claiming Nio is exaggerating its financial results, saying it used a related company that supplies batteries to pad its balance sheet and boost revenue and net income by 10% and 95% respectively, all in the name of meeting targets. Hefty allegations.
- Nio has categorically denied all reports of “financial shenanigans”. On Wednesday, the EV maker vehemently refuted the claims and said the report was “without merit” and “contains numerous errors, unsupported speculations and misleading conclusions”.
- Nio’s US-listed shares have fallen 5% since the report came out, now down 34% year-to-date, with its Hong Kong shares down 11% in the same period. The company says it will be reviewing all allegations and considering what path forward will best protect shareholders interest.
Nio
Jun 102022
Investors say niope
EV stocks are in the spotlight today, with Chinese EV makers struggling with economic uncertainty while Tesla continues to race ahead.- Chinese EV maker Nio lost just under 8% in Thursday’s trading after disappointing with its Q1 report, which posted a LPS of $0.13 on revenues that saw 24% growth to come in at $1.56bn, while margins declined to 14.6% from 17.2% a year ago.
- Covid is infecting the market, big time. Nio spent the quarter scrambling to keep up with intense demand in China while feeling the pressure of recent covid-related shut downs and the dent they’ve left in supply chains. China teased everyone by starting to lift lockdowns earlier this week, but did a swift 180º on Thursday.
- Speaking of EVs, we also got a bullish Tesla update (been a while since we’ve said the word “bullish”). The EV leader reported its May delivery numbers, and Chinese demand has roared back to life to see a whopping 212% increase in deliveries in May despite factory lockdowns. Apparently there’ll be a “nutty” wave of end-of-quarter deliveries this quarter, so strap in.
NIO
May 032022
A rough month for EVs
Chinese automakers hand investors April’s delivery report, giving a little preview of what Tesla’s month may report – and it’s not looking great.- A bunch of EV makers reported lackluster delivery numbers for April, sounding the alarm for the whole industry. Nio delivered just over 5k cars (down from 10k in March), Li Auto reported 4.1k (down from March’s 11k) and XPeng delivered a marginally better 9k cars (down from 15k last month).
- Covid is at the core of the dramatic downturn. Parts of China, including major cities, was in a lockdown for most of the month as covid made a strong comeback, leading to massive production delays in not only the EV industry but across the board.
- It’s not a good sign for Tesla investors. One of the company’s biggest gigafactories is in Shanghai, and it’s been shut down for weeks now – it was estimated that around 15k cars wouldn’t be delivered because of that, but that number is likely to be higher now.
Nio
Apr 122022
Will Nio’s balance sheet survive?
Tesla rival Nio’s first quarter could be in trouble after covid and inflation take a toll on its supply chains.- Delays on delays on delays. Chinese EV maker Nio had a turmoil-filled weekend, warning of severe delivery delays on the way for its customers, after being forced into shutting its production plant.
- Covid continues to leave its mark. There’s been a resurgence of the virus in China, which has brought a fresh wave of restrictions that make production v difficult, and most of its partners have had operations shuttered since March.
- Things got worse when Nio raised its prices. To combat inflation, crazy high commodity costs, and supply shortages, Nio increased the cost of three of its SUVs and asked consumers to be understanding to their plight – prices fell 11% in Hong Kong trading though, so they must not have been in a forgiving mood.
Nio
Mar 252022
Nio stock flies over the speed bump
All eyes are on Chinese EV maker Nio’s outlook when it delivers Q4 earnings, but alas the road ahead doesn’t look as smooth as hoped.🔍 Key points:
- Nio slid up around 3% in extended trading even after releasing a bumpy earnings report, meeting estimates with LPS of $0.16 on revenues grew 54% and just topping expectations at $1.55bn.
- FY deliveries of 91,429 saw growth of 109% y-o-y, likely helped by a 170% increase in new-energy vehicle sales in China in 2021. It comes despite the entire EV market experiencing severe supply shortages in raw materials and dramatic shipping delays.
- There’s a pot-hole ridden path ahead though. Delivery guidance for the quarter came in at 26k on the high end when analysts hoped for around 28k. The brand cited a covid resurgence in China, war in Ukraine, raw material costs (lithium is up 500% in the last year) and chip shortages as the reason for the caution.
Harpur / Unsplash
Mar 042022
Chinese EVs slip into park
February sales numbers are out for leading Chinese EVs, but the sixteen-day Lunar New Year has left a mark on production and sales.🔍Key points:
- Chinese EV stocks were selling off on Thursday. Nio sank 8.7%, Xpeng dropped 9.18%, and Li Auto lost 7.3% – a reaction to a Citi downgrade for the Chinese auto market, which arrived on the back of a disappointing February for the industry.
- The three biggest makers of EVs reported lackluster deliveries for February compared to the month before, as consumption declined and the Lunar New Year meant less production time. Nio delivered just over 6k vehicles, down 36% sequentially, and XPeng and Li Auto saw respective drops of 52% and 31% from January.
- In good news though, Nio is building its business out across the region. The EV company has just been given the green light to trade its shares in Hong Kong through a secondary listing, and is pursuing a listing in Singapore as well.
NIO
Jan 042022
Chinese EV makers speed towards success
Nio leads the Chinese EV fleet into a day in the green after December deliveries get investors revved up.- Its deliveries more than doubled in 2021 after sending out a whopping 10,489 EVs in December, up 50% y-o-y and only a few hundred less than its record breaking November.
- Most of its deliveries were to China, but not for long. The company is slowly entering the European market, and Norwegian sales are picking up.
- Nio jumped 5.65% on Monday to hit a two week high. Other EV leaders like Li Auto (LI) and Xpeng (XPEV) reported bigger numbers, but weren’t able to hold onto their morning gains.
Nio
Dec 312021
Can anyone smell a short squeeze?
It was a thirsty Thursday for Nio investors (along with other underperforming EV stocks), and people think the online army might have come to play.- The stock lifted nearly 15% on Thursday after hitting a 2021 low the day before. EVgo (EVGO) jumped 9% and XL Fleet (XL) gained nearly 8%.
- All three stocks are down in 2021, with Nio having lost 84% this year despite impressive delivery and revenue reports. Withs no news to prompt the gains, a short squeeze could be afoot.
- Wall Street still sees a 55% upside to Nio stock going into 2022 thanks to its increasingly strong market position and excellent products.
Travis Walser / Unsplash
Dec 212021
New sedan squares up to Tesla
Chinese EV challenger Nio launches its latest model, and it’s the closest rival yet to Tesla’s Model 3.- The new ET5 mid-sized saloon was unveiled at NIO Day on Saturday, and offers a 150kWh option that claims to have a range of over 1,000km on a full charge.
- It’s super affordable, with monthly subscription offers starting from just ¥980 ($153).
- But Nio still lost 6% on Monday to hit yearly lows, triggered by a broader market sell-off and Omicron fears.
Nio
Dec 022021
Delivery domination
Nio hits record delivery numbers in November, but Elon Musk overshadows the news with a warning.- Nio delivered 10,878 cars in November, up over 105% y-o-y for its best month ever.
- Chinese EV makers are knocking it out the park, with both Li Auto (LI) and Xpeng (XPEV) seeing impressive November numbers. But, that also means fierce competition – Xpeng (XPEV) out-delivered Nio this month.
- Prices started Wednesday up 3% but closed down over 2% on the back of a warning from Elon Musk that the chip shortage isn’t coming to an end anytime soon.
Oh man, this year has been such a supply chain nightmare & it’s not over!
I will provide an updated product roadmap on next earnings call.
Nov 292021
Cooperation station
Nio nabs a deal with Shell to increase EV adoption across the world.- Nio and Shell have joined forces to build and operate battery swapping facilities and charging stations across the world, hoping to make it easier to switch to team EV.
- They’ll install 100 swapping stations across China by 2025 and start building stations in Europe by 2022.
- Nio has already partnered with China National Petroleum Corporation (601857), which hosts its 300 existing Chinese battery swap stations.
Szabolcs Toth / Unsplash
Nov 102021
Nio nixes Q4 hopes
Mixed earnings see Nio slump 3% after-hours as investors worry about a weak fourth quarter.- Nio beat on earnings but missed on revenue for Q3 under the weight of supply shortages.
- Production was down 65% in October but investors shrugged off the news in the hopes that the losses would lead to future gains
- Q4 sales are forecast at $1.5bn compared to the $1.7bn expected, with little hope of the supply crisis ending.
- China is full speed ahead for electrification though, and the quick transition has meant a booming market for Nio, so it could be worse.
Nov 022021
Nio investors show their faith
Chinese EV maker Nio sees its deliveries take a hit of 65% on the back of supply chain shortages and manufacturing changes, but prices react positively after investors look towards a brighter future.Leading Chinese electric vehicle maker Nio reported its October deliveries yesterday, and the numbers were down a whopping 65% to 3,667 vehicles from 10,628 in September. The numbers also reflect a drop of 27.5% on a year-on-year basis, with the company saying:
The vehicle delivery in October was significantly impacted by reduction in production volume as a result of the restructuring and upgrades of manufacturing lines and the preparation of new products.
The changes to the manufacturing processes were all in the same of its new luxury sedan, and has meant that production was shut down for the first half of the month. Though prices opened down 3.63%, investors soon looked deeper into the report and shrugged off the news in the hopes that the losses would lead to future gains.
Nio closed Monday up 3.63%.
Oct 192021
Nio is doubling capacity
Shares of Chinese automaker Nio lifted over 5% on Friday on reports that annual production capacity at one of its facilities will double in 2022.Electric vehicle maker Nio sent shares jumping for joy after saying that annual production at its Hefei plant will double next year after new expansion plans are put into place, from 120,000 units to 240,000. The expansion will be complete in the first half of 2022.
Prices ended Friday at $39.61, their highest level since the beginning of September.
Nio
Oct 082021
Nio jumps on Goldman faith
Nio ends the day up almost 7% on the back of an upgrade from Goldman Sachs, which gave the stock a price target with a 66% upside.Nio stock rallied on Thursday after Goldman Sachs handed the Tesla rival an upgrade from Buy to Hold, keeping its price target as $56 per share – up over 66% from Wednesday’s closing price of $$33.66. The bullish attitude was largely down to Nio’s new ET7 electric sedan – Nio prices hit their all time high of just under $67 in early January after the sedan was revealed, so people are clearly excited. The new sedan boasts advanced self-driving hardware – a feature that Tesla has yet to perfect. Goldman Sachs analyst Fei Fang wrote:
We believe Nio’s positioning of the ET7 is strategic. The product design, such as the wheelbase, is in the same class with peer full-size premium sedans including Mercedes S-class and BMW 7 series.
Consensus on Wall Street seems to be similarly bullish, with around 80% of analysts issuing the stock with a Buy rating. Prices ended the day up 6.92% at $35.99.
Oct 062021
Nio takes a leaf from Jaguar’s book
Nio snaps up Alister Whelan for its team, a former designer at Jaguar.Nio is expanding its global design team, welcoming senior designer Alister Whelan
from Jaguar Land Rover – a move that aims to propel its presence in the European market. Nio has just launched in Norway and has plans to expand its European presence in the years to come.
Oct 042021
Nio deliveries top guidance
Electric vehicle maker Nio released its latest delivery numbers on Friday, reporting a whopping 10,628 vehicles delivered in September, an increase of over 125% from the same period the year before. The third quarter can boast 24,493 electric vehicle deliveries, up 100% from last year and ahead of Nio’s own guidance of 22,500 to 23,500 vehicles (an estimate that was made when uncertainty over the chip shortage was at a peak.) The shortage isn't over by a long shot, but impressive September numbers from the auto industry overall could mean the end is in sight.Despite the strong numbers, and a brief pop of nearly 4% in morning trading, Nio ended the day down 0.70%.
Sep 242021
Nio’s new battery gets some attention
Electric vehicle maker Nio lifts on news that the electric vehicle maker has released a new battery.Nio released a new battery pack for its electric vehicles with a longer lasting journey. XPeng and Tesla recently announced similar products. Prices lift 1%.
Jengtingchen / Wikimedia Commons
Sep 162021
Sprechen sie Deutsche? Wunderbar!
Germany is Nio’s next stop in its European expansion.Electric vehicle maker Nio continues to gain popularity across the world and is expanding its reach in the European market. The automaker plans to start selling its latest luxury car in Germany from next year, after dipping its toes into the European market with Norway earlier this year.
NIO NextEV / Wkimedia Commons