Nio Reports Q1 Earnings: Revenue of $1.37 Billion and Gross Margin of 4.9%
Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Nio published on Thursday its first quarter financial results reporting a revenue of 1.372 billion in the fourth quarter of 2023, down 7.2 percent from the first quarter of 2023 and 42.1 percent percent lower sequentially.
The company’s gross margin was 4.9 percent, a decrease from the 7.5 percent registered in the fourth quarter but higher than the 1.5 percent gross margin reported a year ago.
Vehicle sales were $1.16 billion (8.3813 billion rmb) in the first quarter of 2024, representing a decrease of 9.1 percent from a year ago and a decrease of 45.7 percent from the fourth quarter of 2023, according to Nio.
Vehicle margin increased year on year from 5.1 percent to 9.2 percent in the first quarter of 2024. Sequentially, it declined from 11.9 percent registered in the fourth quarter of 2023.
Gross profit was 487.7 million rmb ($0.676 billion) in the first quarter of 2024, representing an increase of 200.5% from the first quarter of 2023 and a decrease of 61.9% from the fourth quarter of 2023.
Nio Founder and chief executive stated, “Despite the intensifying market competition, Nio’s premium brand positioning, industry-leading technologies, and innovative ‘chargeable, swappable, upgradeable’ power experience have been recognized for their exceptional competitiveness, leading to solid sequential growth in vehicle deliveries in recent months”.
“In April and May 2024, NIO delivered 15,620 and 20,544 vehicles respectively, representing a substantial year-over-year growth of 134.6 percent and 233.8 percent,” he comment.
“In April 2024, we launched the 2024 ET7 Executive Edition, featuring 180 upgrades tailored to the needs of business travelers and professionals, further enhancing our competitiveness in the premium sedan market. In addition, with a commitment to create better family life, our new smart electric vehicle brand, ONVO, along with its inaugural product L60, was unveiled in May 2024,” William Li added.
Regarding Nio’s first subbrand, Li said the EV maker will expand into the broader mass market.
“With ONVO joining our brand lineup, we are poised to expand into the broader mainstream mass market and embark on the next stage of high-quality growth,” he said.
“We are continuously enhancing the operational efficiency of our power and service network and aim to consistently extend our services to a wider user base. As of today, we have forged strategic partnerships with seven automakers in China to promote the standardization and adoption of battery swapping technologies, underscoring the long-term strategic value of our extensive power network,” added Steven Wei Feng, NIO’s chief financial officer. “Our focus remains on strengthening execution efficiency, optimizing cost management, and accelerating market share growth,” Nio Founder concluded.
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The company expects second-quarter vehicle deliveries to range between 54,000 and 56,000 units, anticipating 17,836 to 19,836 vehicles to be delivered in June.
Nio achieved its best monthly result ever in May, delivering 20,544 vehicles. This followed the delivery of 15,620 units in April, bringing the total to 36,154 units for the first two months of the second quarter.
The figures from the month of May represent a year on year increase of 233.8 percent as the EV maker delivered 6,155 a year ago. The last time the company delivered more than 20 thousand units was in July last year when it registered 20,462 vehicles sold.
Year to date deliveries are more than 66 thousand units, a year on year growth of 51 percent while cumulative deliveries reached 515,811 vehicles.
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Last week, Nio appointed Thijs Meijling as the new Head of European Business as part of a restructuring effort in its European organization, aiming to prepare for the next phase of expansion and the introduction of sub-brands.
In China, Nio registered 6,700 insurance registrations in China last week setting a new record. From May 27 to June 2, the Shanghai-headquartered manufacturer increased its weekly registrations by 24 percent from the 5,400 units registered in the previous week.
Written by Cláudio Afonso | LinkedIn | X
