Chinese electric car maker NIO Limited (NIO) posted better-than-expected results for the third quarter ended September 30 and a forecast for the fourth quarter after the close of trading on Tuesday.
Despite better results, company stock fell 3.28% on Wednesday, but NIO’s shares experienced the largest rise this year, with the price growing 1238 percent over the past six months. Shares have increased by 47 percent since November 2, when the company announced record electric vehicle deliveries in October.
NIO launched the new Nio EC6 electric crossover in late September, which is seen as a competitor in China to Tesla’s upcoming Model Y.
For the third quarter NIO shared that its loss per share fell to $0.12, which is better than the loss of $0.18 per share estimated by analysts. Net loss for the quarter was $175.0 million, 53.5% lower than in the third quarter of 2019 and 1.6% lower than in the second quarter of 2020.
Total quarterly sales rose to $667 million by 146.4 per cent compared to last year, which also remained higher than the $664 million average analyst estimate and 21.7 percent higher than the same in the second quarter of 2020.
NIO said 12,206 electric vehicles were delivered in the quarter, compared to 4,799 in the year ago quarter and 10,331 in the second quarter.
The company intending expanding the availability of its cars, unveiled a new battery leasing scheme during the quarter, dubbed as “battery-as-a-service.” Instead of direct buying, the program provides consumers with the ability to rent out the batteries, which decreases the car’s listed price.
NIO unveiled a 100-kilowatt-hour battery pack earlier this month that extends the range of electric vehicles to 615 km.
NIO expects sales in the range of $921.8 million to $947.9 million for the fourth quarter, above the average analyst estimate of $742 million. The business expects to manufacture 16,500-17,000 cars up 100.6-106.7 percent from a year earlier, but below the third quarter’s 154 percent growth and the second quarter’s 191 percent growth.
The company will hold a ‘NIO Day’ event on January 9, where as planned, the new premium electric sedan-Nio ET7 will be unveiled, as well as further improvements to the batteries (150 kWh battery pack).
NIO Limited (NIO) is likely to set to give Tesla tough competition in China today. In 2021, the company also plans to ramp up production and start exporting to Europe following intentions of Tesla to export Chinese Model 3 cars to the region.