February 24, 2024
London, UK

Nio (NIO) Third Quarter Earnings

NIO shares delivery outlook

Nio reported third-quarter earnings below the analyst’s expectations with wider losses and higher revenues, amid the covid supply disruptions in China.

Nio’s revenue increased by 32.6% to $1.83 billion above the expectations of $1.78 billion.

The loss per share came to $0.30 in the third quarter, the loss in the same quarter the previous year was $0.06.

Cost of sales increased 44% to $1.58 surpassing revenues due to the rising costs of the auto parts and especially the battery costs.

Nio ended the quarter with $7.2 billion in hand. In the second quarter, the cash was at $8.1 billion.

Total vehicles delivered in the quarter rose by 29% to 31,607, which is a record for the automaker.

Gross margin improved to 13.3%, from 13% in the second quarter.

Tesla Third quarter earnings reported on October 19 mostly in line with expectations.

Nio Guidance

Nio now expects the revenue for the fourth quarter to increase by 80% between 2.41 billion and 2.67 billion which is lower than the analyst’s expectations of $3.02 billion.

The electric vehicle firm expects now to deliver between 43,000 and 48,000 electric vehicles (EVs) in the last quarter of 2022.

NIO Stock Price

Nio stock closed 11.73% higher today’s trading session at $10.34 boosted by the strong rally across the board after the announcement of a lower than expected inflation figures. The stock has a 52-week trading range between $8.38 to $43.55 and has an all-time high price of $66.99 from January 11, 2021. Nio’s market capitalization stands at $17.28 billion.

From a technical perspective, the bearish outlook is intact despite today’s impressive rebound. The initial hurdle for the stock is at $12.42 which is the top from November 7. Above that our next target is placed at $14.69 the 50-day moving average. Critical resistance awaits at $17.65 the 100-day moving average.

On the contrary, the first support for the Nio stock would be met at $10.05 the daily low. Sellers would be more aggressive below that level and might push the price towards $8.38 the low from October 24, which if breached might open the way for the two-year lows.

Deutsche Bank on November 8 reiterated Nio at Buy but cut the price target from $39 to $20.

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