After NIO posted impressive sales numbers in July, the company also reportedly landed better-than-expected revenue and is seeing its shares rise as a result.
NIO’s shares rose more than 1 percent after hours on Wednesday, following a brighter Q2 revenue report than the company expected, according to Refinitiv data compiled by CNBC.
The China-based electric vehicle (EV) startup saw 21,896 deliveries total in the second quarter, despite the ongoing semiconductor shortage.
While the company predicted an overall 0.68 yuan ($0.10 USD) per share in Q2, the start-up electric automaker only lost about 0.42 yuan ($0.07 USD) per share – boosting the company’s revenue to 127 percent year-over-year for a total of 8.45 billion yuan ($1.3 billion USD).
NIO Delivered 21,896 Vehicles in Q2, 112% Year-Over-Year Increase https://t.co/MYzGFDzN3Z
— TeslaNorth.com (@RealTeslaNorth) July 1, 2021
With the revenue boost, NIO is now forecasting that it will deliver between 23,000 and 25,000 vehicles in the third quarter, though the company could face new and old barriers in Q3. Soaring COVID-19 cases with the global onset of the Delta variant could affect NIO’s third-quarter sales, in addition to the still ongoing semiconductor shortage.
Wedbush’s Dan Ives said, “The issue for Nio, for Tesla, for others, every car that they’re making, they’re selling. It’s really production and chip shortage, and that’s going to be an overhang on the overall EV space.”
Still, NIO’s ET7 electric sedan is also set to begin delivering in 2022, marking the company’s first electric sedan. The EV will be NIO’s second car, following the ES8 electric SUV.
Some analysts have predicted that NIO will replace Tesla as China’s top EV automaker, but that may be a stretch at this point in time.
Contributing Writer at TeslaNorth.com from California’s southeast Bay Area. Covers electric vehicles, space exploration, and all things tech. Loves a good cup of coffee, live music and puppies. Buying a Tesla? Click here to get 1,000 free Supercharging miles.