NIO reports Q4 earnings disappointing
The EV maker, sometimes dubbed as China’s Tesla, reported a far worse-than-feared Q4 loss.
Nio $NIO Inc(NIO.US$ posted an adjusted RMB 5.07B loss for the quarter, which is much wider than the RMB 3.5B loss in Q3 and a RMB 1.75B loss in Q4 2021. That latest loss equated to an Earnings Per Average Diluted Share loss of $0.44 in the quarter, nearly doubling the expectations of analysts.
Vehicle margin also dropped sharply to 6.8% in Q4 as compared to 20.9% in Q4 of 2021. The decrease was attributed to “the increased inventory provisions, accelerated depreciation on production facilities and the losses on purchase commitments for the existing generation of ES8, ES6 and EC6.”, according to the CEO, William Li.
Furthermore, Nio has been facing headwinds from the global economy, strict COVID lockdowns that only ended in late 2022, and the phase-out of Chinese government subsidies.
And with the “losses on the purchase commitments”, this could signal a tougher competition ahead and that the challenges are far from over.
What do you think of Nio’s outlook for this year? Let me know in the comments!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
骨神 : No need to keep repeating the same thing
Bernice1 : Tesla has all been knocked down, how much performance can he do