The market capitalization of the Chinese vehicle manufacturer (EV) NIO outperformed established OEMs such as PSA Group, Nissan and Renault after exceeding their quarterly estimates at the moment.
Nio’s percentage value jumped 11% at the start of the consultation today due to a much smaller loss than expected in the current quarter, despite Covid-19’s commercial and source difficulties.
The recently undersized electric vehicle manufacturer achieved a gross margin of 8.4% after six years of losses, adding a gross margin of -33.4% just a year ago.
Its second quarter loss increased from 3.3 billion yuan ($470 million) a year ago to 1.2 billion yuan ($170 million) and represented the fourth consecutive loss crunch.
Nio had the most powerful quarter in its recent history, promoting almost three times the number of its cars, by 10,331, a year ago.
Nio also forecasts a solid third quarter in its earnings call, estimating deliveries between 11,000 and 11,500 cars (which would be a significant improvement of the 4,799 cars sold in the third quarter of last year.
Estimated that it will generate between 4.050 million yuan ($580 million) and $4.210 million ($61 million) in profits for the third quarter.
He also reported US$1.6 billion in money and quarter equivalents, which CEO William Bin Li showed was enough for the company’s development, innovation, production and distribution over the next 12 months.
“Current production constraints will be eliminated in the short or long term and we are confident that our production capacity will meet the accelerated demand for our models,” Chief Executive William Bin Li said in today’s earnings report.
Nio’s percentage value jumped in the first part of the year, to the point where it challenged the market’s beloved Tesla for the glory of roid investment stocks.
It has increased its percentage value by approximately 276% in the last 3 months, despite promoting far fewer cars than its California rival. Its percentage value has increased by more than 200% since the beginning of June.
His inventory has skyrocketed since he showed that his strategic investors had met his liquidity injection obligations to stabilize the troubled company.
Nio’s market capitalization of $16.83 billion exceeds that of the PSA Group (a manufacturer of Peugeot, Citroen, DS, Opel and Vauxhall and SUV), amounting to $13.22 billion.
Its classic French rival, Renault, has $6.98 billion, Jaguar Land Rover’s parent company, Tata, has a capitalization of just $5.4 billion, while Nissan has $13.5 billion.
Renault, which has an alliance with Nissan (of which it owns 43%) and Mitsubishi, remains the third largest car manufacturer in the world and sells twice as many cars as Nio.
Meanwhile, PSA Group is merging with Fiat Chrysler Automobiles (which also has a smaller market capitalization than Nio) to shape Stellantis.
During a busy June for Nio, he also made an offer of 72 million U.S. deposit shares (ADS). To US$5.95 and added an additional charge of 10.8 million ADS.
It also introduced the EC6 EV SUV late last month, which had to be ordered in China through the Nio app.
I’ve been testing cars and writing about the auto industry for over 25 years. My career began in the newspapers and became the writing of two
I’ve been testing cars and writing about the auto industry for over 25 years. My career began in the newspapers and evolved in the writing of two automotive magazines. I was founded in Italy as a freelancer for more than a decade, covering the European automotive sector, with a focus on product testing and product progression for readers around the world. I judge the smart and badness of cars in the way they carry out their intended purposes at their costs for their target consumers compared to all their competitors. I do not occupy short or long positions in the automotive industry, basically because this would only compromise the integrity of my work, so my written positions are a condensation of acquired knowledge combined with approximately 4 complete product cycles of delight in value.