What happened
Fast-growing Chinese electric vehicle (EV) maker Nio (NIO +5.50%) reported earnings last night, and its results beat consensus estimates. But investors initially drove the company's American depositary shares down more than 5% before the decline eased. As of 12:15 p.m. EDT today, the shares were trading down 2.25%.
So what
Nio reported a loss of $0.07 per share on revenue of $1.31 billion. That represents revenue growth of 127% compared to the prior-year period. Investors might have been hoping for more, but the net loss beat estimates and was a vast improvement from the $0.16 per share loss it reported in the second quarter of 2020. And CEO William Bin Li told investors the company will introduce more than just the previously announced ET7 luxury sedan next year.
Nio's ET7 luxury sedan will be available early next year. Image source: Nio.
Now what
Nio plans to have its first electric sedan available for Chinese consumers in early 2022, and will introduce it in Norway later in the year. The company recently exported its initial shipment of its flagship ES8 SUV to Norway, its first market outside China.
CEO Li also told investors there will be two additional products introduced in 2022, saying "As the EV adoption begins to reach a tipping point worldwide, we believe it is imperative to speed up the launch of new products."
Investors might have hoped for more, but the company's revenue growth closely followed its growth in production. Second-quarter vehicle deliveries were 112% above 2020's second quarter. With plans in place to ramp up production, and new products on the horizon, Nio seems to be closer to breaking into profitability. That might be why any disappointment with the second-quarter results was muted today.
