Why Nio Inc – ADR (NYSE: NIO) Stock Is Under Pressure

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Nio Inc – ADR (NYSE: NIO) stock fell over 1.5% in the pre-market session of April 30th, 2021 (Source: Google finance) after the company posted lower than expected results for the first quarter of FY 21.

The company delivered net loss attributable to NIO’s ordinary shareholders in the first quarter 2021 of RMB 4,875.0 million (US$744.1 million), representing an increase of 183% from the first quarter of 2020 and an increase of 226.7% from the fourth quarter of 2020. The adjusted net loss (non-GAAP) was RMB354.6 million (US$54.1 million) in the first quarter of 2021, representing a decrease of 78.6% from the first quarter of 2020 and a decrease of 73.3% from the fourth quarter of 2020. The company generated the adjusted loss from operations (non-GAAP) of RMB199.4 million (US$30.4 million) in the first quarter of 2021, representing a decrease of 87% from the first quarter of 2020 and a decrease of 77.1% from the fourth quarter of 2020.

Moreover, the vehicle margin in the first quarter of 2021 was 21.2%, compared to negative 7.4% in the first quarter of 2020 and 17.2% in the fourth quarter of 2020. The increase of vehicle margin compared to the first quarter of 2020 was mainly due to the increase of vehicle delivery volume, higher average selling price, as well as lower material cost. The increase of vehicle margin compared to the fourth quarter of 2020 was mainly attributed to higher take-rate of NIO Pilot and 100 kWh battery package. Vehicle sales in the first quarter of 2021 were RMB7,405.8 million (US$1,130.3 million), which represents an increase of 489.8% from the first quarter of 2020 and an increase of 20% from the fourth quarter of 2020.

NIO in the first quarter of FY 21 has reported the adjusted loss per share of 0.23 Chinese yuan per ADS ($0.04), beating the analysts’ estimates for the adjusted loss per share of 0.81 yuan per ADS in a Capital IQ poll. The company had reported the adjusted revenue growth of 482 percent to 7.98 billion Chinese yuan ($1.22 billion) in the first quarter of FY 21, beating the analysts’ estimates for revenue of 6.84 billion yuan.

For the second quarter, the Chinese electric vehicle maker expects deliveries to be in the range of 21,000 to 22,000 vehicles, generating revenue expected to be in the range of 8.15 billion yuan to 8.50 billion yuan, compared to the Street estimate of 7.83 billion yuan.

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