NIO Q3 Earnings: 11.6% Gain In Vehicle Deliveries, Margins Improve, Issues Robust Q4 Delivery Outlook

Chinese electric vehicle maker NIO, Inc (NYSE: NIO) reported fiscal third-quarter revenue of 18.67 billion yuan ($2.66 billion), down 2.1% year-over-year and up 7.0% from the previous quarter. Analysts, on average, estimated revenue of $2.70 billion for the quarter.

Excluding share-based compensation expenses, the company reported an adjusted loss per share per ADS of 2.14 yuan or 31 cent loss compared to a 2.28 yuan loss in the year-ago quarter and a 2.21 yuan loss in the second quarter of 2024.

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Analysts had called for a loss of 32 cents per ADS. The stock price slid after the print.

Vehicle deliveries were 61,855 in the quarter, up 11.6% Y/Y and 7.8% Q/Q. Consequently, vehicle revenue declined by 4.1% Y/Y and increased by 6.5% Q/Q.

Nio delivered 20,976 vehicles in October 2024. As of October 31, 2024, the cumulative number of NIO vehicle deliveries reached 619,851.

Gross margin for the quarter expanded to 10.7%, up from 8.0% a year ago and 9.7% the previous quarter, as vehicle margin expanded Y/Y from 11.0% a year ago to 13.1%. 

As of September 30, 2024, cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits totaled 42.2 billion yuan ($6.0 billion).

NIO founder, Chair, and CEO William Bin Li said the company secured over 40% of China’s BEV market share for vehicles priced above RMB 300,000 during the year’s first nine months. The ONVO L60 deliveries began, with production capacity set for rapid growth in the coming months. NIO expects its total delivery volume in the fourth quarter to achieve a new record.

The ET9, NIO’s executive flagship, is entering mass production, showcasing its advanced technological capabilities and reinforcing its presence in the premium segment.

Additionally, NIO plans to debut Firefly, a boutique compact vehicle brand, at NIO Day 2024, broadening its product lineup to reach a broader customer base.

Cost optimization efforts raised the vehicle gross margin, with positive free cash flow achieved during the quarter.

NIO’s CFO, Stanley Yu Qu, highlighted that starting next year, the company’s three brands will launch a robust product cycle to significantly boost sales volumes and further enhance operational and financial performance.

NIO’s Forward Outlook: The company guided deliveries of 72,000–75,000 units for the fourth quarter, or 43.9%–49.9% year-over-year increase. 

The company expects fourth-quarter revenue of $2.804 billion—$2.904 billion, representing 15.0%–19.2% year-over-year growth.

NIO stock plunged over 45% year-to-date as the Chinese EV industry grappled with weak domestic demand and protectionist tariffs, while the fiscal stimulus measures disappointed the Street.

Price Action: NIO stock is down 1.30% at $4.57 premarket at the last check on Wednesday.

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Photo Courtesy of NIO