Nio Misses Q1 Deliveries, But Expert Says EV Maker 'Seems To Be On The Upswing'

Zinger Key Points
  • Nio's Q1 earnings miss estimates; stock drops over 4.5% due to lower vehicle deliveries and revenue.
  • KraneShares' Anthony Sassine sees future potential with new models, promotions, and improved margins.

Nio Inc. NIO, the Chinese electric vehicle maker, saw its stock plummet following the release of its first-quarter earnings for 2024, which missed analysts’ expectations and showed a significant decline in vehicle deliveries.

The disappointing results led to a stock decline of 6.5% to $4.92 at the time of publication Thursday.

Here's a breakdown of the financials and expert insights that could offer a glimmer of hope for investors.

Nio Stock’s Slide On Q1 Earnings Miss

Nio reported Q1 revenue of $1.37 billion, down 7.2% year-over-year and a steep 42.1% drop from the previous quarter, missing the analyst consensus of $1.48 billion.

Vehicle deliveries fell to 30,053 units, a sharp 39.9% decline Q/Q. The company posted an adjusted loss of 33 cents per share, slightly higher than the expected loss of 31 cents.

Gross margin for the quarter saw an improvement, reaching 4.9% compared to 1.5% a year ago but down from 7.5% in the previous quarter.

More details here: EV Maker Nio’s Q1 Deliveries Fall 40% From Q4, Stock Slides

Nio stock is down 41.68% YTD, and is 8.24% lower for the year.

Despite the gloomy Q1, Nio's outlook for Q2 2024 appears optimistic. The company guided for vehicle deliveries between 54,000 and 56,000 units and Q2 revenue in the range of $2.297 billion to $2.373 billion,

EV Expert Insight: Anthony Sassine from KraneShares

Anthony Sassine, senior investment strategist and portfolio manager at KraneShares, provided some valuable insights to Benzinga regarding Nio’s future prospects. Sassine highlighted several key points:

  • Model Upgrades and Promotions: “NIO seems to be on the upswing this year after completing the annual upgrade of all its models,” said Sassine. That, and the promotions being offered around its battery as a service (BaaS), could drive future sales, he noted.
  • New Launches: According to Sassine, the launch of Nio's first mass segment vehicle, the Onvo L60, priced competitively below expectations and Tesla Inc‘s Model Y, could attract a broader customer base.
  • Future Sales and Margins: “We expect NIO EV sales to stabilize above 20K by Q4 of 2024 and improve gross margins due to automation and the shift to the new manufacturing platform,” said Sassine.
  • Guidance and Innovations: He emphasized the importance of the company's guidance on Q2 sales and margins, pre-order data on the Onvo and progress on semi-solid-state batteries, which could be crucial for Nio's future performance.

While Nio's Q1 earnings have certainly spooked investors, the strategic insights and future outlook shared by Sassine suggest that the company is on the path to recovery.

The upcoming quarters will be pivotal as Nio navigates through its challenges, focusing on new product launches and technological advancements.

Investors should keep a close watch on Nio's progress and market responses in the coming months.

Read Next: Nio, XPeng, and Li Auto See Major Sales Growth in May, Attracting Investor Interest

Photo: Nio

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: Analyst ColorEarningsEarnings MissesLong IdeasNewsTop StoriesAnalyst RatingsTechTrading IdeasAnthony SassineChinaelectric vehiclesEVsExpert IdeasmobilityStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!