Nio Inc – ADR (NYSE: NIO) stock slight recovers post hammering

Free $100 Forex No-Deposit Bonus

Nio Inc – ADR (NYSE: NIO), a pioneer in China’s premium electric vehicle market, stock got hammered on January 27th, 2020 (Source: Google finance) 13.95% as fears about a virus outbreak in China drove a broad-based sell-off of Chinese companies’ stocks. The Chinese government has already shut down transportation in one city and has taken actions to limit movements elsewhere. The stock recovered over 3% on 28th January, 2020 (as of 9:58 am GMT-5; Source: Google finance). The fears about the virus are likely to put a damper on consumer spending in China in the near term. The recent report tells that the company is planning to set up 200 brick-and-mortar stores in 2020, that will comprise of Nio Houses and Nio Spaces, which would likely increase investment needs.

On the other hand, the company has reported the adjusted net loss (non-GAAP) of RMB2,451.2 million (US$342.9 million) in the third quarter of 2019, which reflects the decline of 23.2% from the second quarter of 2019 and a 3.1% increase from the same quarter of 2018. The company has posted net loss attributable to NIO’s ordinary shareholders of RMB2,553.6 million (US$357.3 million) in the third quarter of 2019, which reflects the decline of 22.9% from the second quarter of 2019 and a decline of 73.8% from the same quarter of 2018. Loss from operations was RMB2,409.2 million (US$337.1 million) in the third quarter of 2019, which reflects the decline of 25.3% from the second quarter of 2019 and a decline of 14.3% from the same quarter of 2018. The company has reported the 25% rise in the total revenues to RMB1,836.8 million (US$257.0 million) in the third quarter of 2019. The company’s gross margin was negative 12.1%, compared to negative 33.4% in the second quarter of 2019 and negative 7.9% in the same quarter of 2018.

Meanwhile, the company has recently announced the 100-kWh battery pack and 20-kW DC Power Home. The deliveries of 100-kWh battery pack are anticipated to begin in 2020 Q4 and expected to significantly improve the driving range of all NIO vehicle models. Aided by the Company’s proprietary battery-swap technologies, NIO will provide its users flexible battery upgrade programs, making “Battery as a Service” a unique value proposition. The Company had also unveiled its third production model, the EC6, a smart premium electric coupe SUV. The company intends to announce the prices and specifications of EC6 in July and the delivery is expected to begin in September 2020.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.