Tesla Rival Nio Posts Sharply Higher Sales
November 17 2020 - 6:18PM
Dow Jones News
By Kimberly Chin
Electric-vehicle maker Nio Inc. said its sales more than doubled
in the latest quarter as the Chinese company vies for a share of
the competitive EV market.
Nio's vehicle sales increased 146% from a year earlier to 4.27
billion yuan, equivalent to $650 million, while overall revenue for
the quarter rose to 4.53 billion yuan from 1.84 billion yuan.
Analysts polled by FactSet were expecting 4.37 billion yuan in
total revenue.
Nio's American depositary receipts, which have soared this year,
fell 3% after hours to around $45 on Tuesday.
Shanghai-based Nio, which was founded in November 2014 by serial
entrepreneur William Li Bin and backed by Chinese internet giant
Tencent Holdings Ltd., focuses on developing and manufacturing
electric vehicles. Nio went public on the New York Stock Exchange
in September 2018.
The expectation of sharp growth in electric-vehicle sales, and
rising valuations for Tesla Inc. and newcomers like Nio, are
spurring one of the biggest transformations in the auto industry in
a century, driving new investments and opening the door to a host
of new competitors and brands globally.
Electric-vehicle sales account for only about 2% of total car
sales globally but are expected to grow amid tightening regulations
on tailpipe emissions globally. Eco-friendly policies from the
European Union and China and from U.S. states like California are
prompting auto makers to invest billions of dollars into electric
technology and models.
Hurdles to adoption of electric vehicles remain, though,
including the need for more charging stations and higher costs
relative to cars powered by gasoline or diesel fuel.
China represents fertile ground for electric vehicle makers,
with the country aiming for new-energy vehicles to account for
around 20% of its total car sales by 2025.
"China remains a greenfield EV market opportunity as we believe
overall EV sales can potentially double over the next few years
given the pent=up demand for EV vehicles in this region across all
price points," said Wedbush Securities Analyst Daniel Ives in a
note.
Tesla Inc. posted its fifth consecutive quarter of profitability
in the third quarter, propelled by production from its Shanghai
factory, where Tesla benefits from cheaper labor, and from strong
demand for its more-affordable Model 3 car.
Tesla's shares have more than quintupled this year and closed up
8.2% on Tuesday at $441.61, a day after the S&P Dow Jones
Indices said it will add the electric-car maker to the S&P
500.
Nio began deliveries of an electric coupe sports utility vehicle
in September, which is set to challenge Tesla's midsize SUV, the
Model Y.
Nio said it delivered 12,206 vehicles in the September-ended
quarter, a more than 150% increase from the prior year. In October,
it delivered 5,055 vehicles, bringing its 2020 tally so far to
31,430 vehicles, more than double the number in the same period
last year, company said.
The company projects EV deliveries of around 16,500 to 17,000 in
the fourth quarter and revenue between 6.26 billion yuan and 6.44
billion yuan
Losses for the third quarter narrowed to 1.05 billion yuan, or
98 yuan an American depositary share, from 2.52 billion yuan, or
2.48 yuan, in the comparable period a year ago. Excluding
share-based compensation and other special items, adjusted losses
per ADS were 82 yuan. Analysts were looking for a reported loss of
1.18 yuan a share.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
November 17, 2020 18:03 ET (23:03 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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