The Nio Inc – ADR (NYSE: NIO) stock price fell 6.99% after releasing its Q2 2023 financial results, which showed that it delivered 23,520 EVs comprising of 10,492 premium smart electric SUVs and 13,028 premium smart electric sedans, representing a 6.1% decline from the second quarter of 2022, and a of 24.2% drop from Q1 2023.
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The EV manufacturer generated vehicle sales worth RMB7,185.2 million (US$990.9 million) in the second quarter of 2023, representing a decline of 24.9% from Q2 of 2022 and a drop of 22.1% from Q1 2023.
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NIO noted that its vehicle margins had fallen from 16.7% in Q2 2022 to 6.2% in Q2 2023. The ongoing price wars triggered by industry leader Tesla’s price cuts have affected the company’s margins and those of its Chinese peers.
The company’s total revenues were RMB8,771.7 million (US$1,209.7 million) in Q2 2023, representing a decline of 14.8% from Q2 2022 and a decrease of 17.8 % from Q1 2023. The company also generated sales from other items that were not car sales.
NIO’s gross profit was RMB87.0 million (US$12.0 million) in Q2 2023, marking a decline of 93.5% from Q2 2022 and a 46.4% drop from the Q1 2023 figures. The company’s gross margin was 1% in Q2 2023 versus the 13.0% recorded in Q2 2022 and the 1.5% figure in Q1 2023.
The EV manufacturer’s loss from operations was RMB6,074.1 million (US$837.7 million) in Q2 2023, marking a 113.5% decline from Q2 2022 and an increase of 18.8% from the Q1 2023 figure. The growing losses paint a bleak picture for the company.
William Bin Li, NIO’s founder, chairman and CEO, said: “NIO delivered 23,520 vehicles in the second quarter of 2023. In July 2023, NIO delivered 20,462 vehicles, representing a substantial increase of 103.6% year-over-year, which propelled NIO to the top position in China’s premium electric vehicle market for vehicles priced above RMB300,000. Attributed to the product transition based on the NT2.0 Platform, coupled with the expansion of our power network and the strengthening of our sales capabilities, we expect solid growth in vehicle deliveries in the second half of 2023.”
NIO stock price.
The NIO stock price fell 6.99% to trade at $10.25, from Monday’s closing price of $11.02.
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