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EV maker Nio ascribes its underwhelming Q2 2022 performance to the pandemic, but looks to the rest of the year with optimism.
Chinese electric vehicle (EV) manufacturer Nio (NYSE: NIO) recently posted its Q2 2022 earnings report which showed a substantial loss. According to Nio, it incurred a loss of 409.8 million in the second quarter, which is significantly more than its bottom-line deficit in the first quarter. Furthermore, the Chinese EV maker’s Q2 2022 loss comes despite an increase in automobile shipments for the period.
Nio had previously stated that it delivered 25,059 vehicles during the second quarter, which is above its guidance, but slightly less than Q1’s deliveries. However, the Shanghai-based Chinese automobile manufacturer now says that it expects its deliveries to climb sizably in the third quarter.
Key Figures from Nio Q2 2022 Outing
For Q2 2022, Nio realized a revenue haul of $1.54 billion, which represents a 21.8% increase year-over-year (YoY). Furthermore, adjusted loss per share is 20 cents, while gross margin came in at 13.0%. The company’s latest gross margin is over 5% less than the 18.6% recorded in the second quarter of 2021. In addition, Q2 2022’s gross margin percentage is also slightly lower than the 14.6% that Nio reported in Q1 of the same year.
Nio’s cash at quarter-end for the second quarter of this year came in at $8.1 billion. This sum represents a slight drawdown from the $8.4 billion liquid funds the EV maker had as of March.
Following the Q2 2022 earnings announcement, Nio’s shares traded 6% lower in Wednesday’s premarket trading session.
Nio Execs Comment on Second-Quarter Performance
Touching the lingering effects of the pandemic on Nio’s operational performance, founder, chairman, and CEO William Bin Li explained:
“We delivered 25,059 vehicles in the second quarter of 2022, representing a growth of 14.4% year-over-year despite the COVID-19 related challenges. With the teams’ concerted efforts, our deliveries started to recover and achieved 10,052 and 10,677 units in July and August, respectively.”
In addition, Li also suggested that Nio looks to hit the ground running in the second half of the year. According to him:
“The second half of 2022 is a critical period for NIO to scale up the production and delivery of multiple new products.”
Some of these operational efforts include a concerted push for new vehicle models such as the ES7 electric SUV and ET5 electric sedan.
Also weighing in on Nio’s Q2 2022 outing, chief financial officer Steven Wei Feng said that they “achieved solid financial results for the second quarter of 2022 in spite of the tremendous challenges and cost volatilities.”
Furthermore, Wei Feng also buttressed Li’s assessment of ramped-up deliveries for the rest of the year. According to the CTO, Nio is working closely with its partners to meet the surging global demand for electric vehicles. By doing so, the EV manufacturer looks to increase its market share in the “global premium smart electric vehicle market.”
Nio expects to deliver between 31,000 and 33,000 vehicles in the third quarter. In addition, the company also seeks to generate revenue as high as $2 billion for the same period.