Nio, the electric vehicle maker, announced on Tuesday that its loss in the fourth quarter slightly narrowed while warning of a potential decrease in sales for the current quarter.
In Q4, the company reported a net loss of 5.37 billion renminbi, down from 5.79 billion renminbi in the same period the previous year. Revenue, on the other hand, increased by 6.5% to 17.1 billion renminbi, equivalent to $2.41 billion.
The loss per U.S.-listed share came to 45 cents, or adjusted to a loss of 39 cents per share when accounting for share-based compensation. This figure was higher than the 33 cents per share loss that analysts surveyed by FactSet had anticipated, with expected sales of $2.52 billion.
Positive Outlook amid Challenges
Despite the better-than-expected financial results, Nio’s shares have faced a decline of 41% since the beginning of the year. However, in the fourth quarter, the company saw a 25% increase in deliveries and boasted vehicle margins of 11.9%.
Chairman and CEO William Bin Li expressed confidence in Nio’s future, stating, “Our continuous investments in technologies, battery swapping network, and user community will bolster our competitive advantages as we navigate future competition.”
Projections for Q1
Looking ahead, Nio has forecasted stable deliveries for the first quarter, with a minimal weakening of 0.1%. The expected revenue range for Q1 is between 10.5 billion to 11.1 billion renminbi ($1.48 billion to $1.56 billion), reflecting a decline of 1.7% to a gain of 3.8%. However, analysts at FactSet had anticipated revenue figures closer to $2.21 billion.
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