First Fiscal Quarter
For the quarter ended on March 31st, revenue fell almost 12% YoY to $1.372 billion and net loss widened 9.4% YoY to $718 million net loss, reporting a loss of 33 cents a share, both of which reflect the ongoing pressure on profitability within the competitive EV market shaped by a bruising price war. Nio reported it delivered 30,053 EVs, leaving it far behind Li Auto but ahead of XPeng.
On a brighter note, vehicle margin improved from 5.1% reported for last year’s comparable quarter, as it rose to 9.2% due to lowered material cost per unit. Gross margin also substantially improved, rising from 1.5% to 4.9%, reflecting the success of Nio’s efforts to manage its costs more effectively and manage its manufacturing process.
Despite the challenges, Nio’s cash reserves stood at $6.3 billion on March 31st.
A More Optimistic Q2 Outlook
The nine-year-old company is yet to turn profitable.
Analyst Aaron Ho of CFRA Research found Nio’s Q2 delivery guidance to be weaker than expected, expecting the EV maker to report a loss in in 2024-2025 and warning of increased R&D spending due the company’s commitment to its battery-swapping strategy, autonomous driving, the upcoming Onvo branded mass-market cars, along with costs resulting from its European expansion, all of which threaten to further burden short-term profitability.
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