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Nio Earnings
Estimates: Wall Street expected Nio to lose 14 cents a share in the first quarter. According to FactSet, sales amounted to 1.512 billion dollars, an increase of 23% over last year. Results: Nio posted first-quarter loss of 13 cents per share versus loss of 4 cents a year earlier. Revenue rose 24% to $ 1.56 billion. Nio already reported deliveries of 25,768 vehicles in the first quarter, up 28% year-on-year and up 3% from the fourth quarter of last year. Outlook: Nio sees deliveries of 23,000-25,000 for the second quarter, up 5% -14% from a year earlier, but slightly lower than in the first quarter. Nio has already reported EV 5,074 deliveries in April and 7,024 in May, so the forecast is for June deliveries of around 10,900-12,900 as Nio production recovers to pre-lockdown levels. A recent local report reported that Nio’s businesses have now returned to pre-lockdown levels. The company is also opening Nio stores in Shanghai, its largest market. With the opening of Shanghai last week, Deutsche Bank analyst Edison Yu says Nio may finally get back on track with its product cycle this year. “In fact, Nio has already delivered 101 vehicles to the city since (June 2), even before it starts delivering ET7,” he wrote in a June 6 note. Nio also sees second-quarter revenue of RMB 9.34 billion ($ 1.47 billion) and RMB 10.088 billion ($ 1.59 billion). This would be an annual gain of 10.6% -19.4% in local currency.
Sales of Tesla in China
Tesla sold 32,165 vehicles made in China last month, well below normal, but from just 1,512 in April. These figures are part of industry-wide data from the China Passenger Car Association. Tesla Shanghai produced 33,544 vehicles compared to the standard production of 60,000 vehicles or more. However, that number is higher than 10,757 in April, when the Shanghai plant closed most of the month as part of restrictions on Covid across the city. Starting April 19, Tesla created a closed-loop environment in which workers lived in the factory to resume production, with production reportedly rising in late May. Local state media reported that as of now, Tesla has returned to 100% of daily production, with employees still at the construction site. Shanghai largely ended the lockdown on June 1, with Beijing recently easing restrictions. These are two huge markets for Tesla in China. Meanwhile, Shanghai and many local governments are introducing new subsidies to boost EV sales for the rest of 2022. Of the vehicles sold in May, 22,340 were exported and 9,825 sold locally. Shanghai, Tesla’s largest market in China, ended Covid lockdown on June 1. On Wednesday, a local report quoted a BYD (BYDDF) executive who confirmed that he would supply batteries to Tesla. The Market Rally does not have a Key Characteristic, Falling Indices. 5 Shares close to market points
Nio Stock, Tesla Stock
Shares of Nio fell nearly 6% before opening today. Nio shares rose 3.6% to 20.35 points on Wednesday, the ninth rise in 10 sessions. The stock has regained the 50-day line in recent days, gaining almost 50% in the last month, according to MarketSmith. The NIO stock is still in good shape from the 52-week high at 55.13, but its relative strength line is back. Tesla shares rose 3.5% in pre-orders. Shares rose 1.3% to 725.60 on Thursday. The TSLA share is in long-term consolidation with a buying point of 1,208.10. Shares are trading below the 50-day bearish line. Among other Chinese-based electric vehicle makers, the Xpeng (XPEV) fell 4% early Thursday while Li Auto (LI) sank 3%. Both rose on Wednesday and have risen sharply in recent weeks. BYD shares are not trading on Thursday. Shares rose 2.4% to 38.80, reaching a buy point of 41.34 from a deep cup base. Its RS line hit a new high on Wednesday. Follow Adelia Cellini Linecker on Twitter @IBD_Adelia. YOU CAN ALSO LIKE: Is Nio Stock A Buying Right Now? Is Tesla Stock Market Now? Why this IBD tool simplifies the search for top stocks Do you want to make quick profits and avoid big losses? Try SwingTrader IBD Digital: Unlock IBD Premium stock lists, tools and analysis today
