Nio Stock Slips After Q4 Revenue Guidance Disappoints

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Nio has been incurring losses since its inception, and its current liabilities exceed current assets as of September 30, the company noted.

  • For the third quarter, the company reported total revenue of RMB21.79 billion, up about 17% year-on-year. 
  • The company ended the quarter with cash and cash equivalents, restricted cash, short-term investments and long-term time deposits of RMB36.7 billion.
  • Nio’s revenue in Q4 is expected to increase by 66.3% to 72.8% YoY, to a range of RMB32.76 billion to RMB34.04 billion.

NYSE-listed shares of Chinese EV maker Nio Inc. (NIO) fell 2% on Tuesday morning after the company’s fourth-quarter revenue guidance disappointed Wall Street.

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For the third quarter, the company reported total revenue of RMB21.79 billion ($17.15 billion), up about 17% year-on-year (YoY), but below an analyst estimate of RMB22.29 billion, according to data from Fiscal AI.

Adjusted net loss per share came in at RMB1.14, lower than the RMB2.14 reported in the corresponding quarter of 2024. Wall Street had, on average, expected the company to report a higher loss per share of RMB1.64.

The company ended the quarter with cash and cash equivalents, restricted cash, short-term investments and long-term time deposits of RMB36.7 billion. It expects its financial resources to be sufficient to support its operations in the ordinary course of business for the next twelve months.

Nio has been incurring losses since its inception, and its current liabilities exceed current assets as of September 30, the company noted.

Q4 Guidance

For the fourth quarter, the company expects vehicle deliveries to be between 120,000 and 125,000 vehicles, representing an increase of approximately 65.1% to 72.0% from the same quarter of 2024.

Nio now has three brands, including its premium Nio brand, and two others, Onvo and Firefly. The company recorded deliveries of 87,071 units in the third quarter, an increase of about 41% year-on-year, driven by strong demand for its new Nio ES8 and Onvo L90 vehicles.

“The All-New NIO ES8 has set the fastest record for delivering over 10,000 units among BEVs priced above RMB400,000 in China, while the ONVO L90 has remained the top-selling large BEV SUV for three consecutive months, and FIREFLY has quickly secured a leading position in the small smart high-end electric car market since its first deliveries,” CEO William Li said on Tuesday. He added that the company is working closely with its supply chain partners to ramp up production.

Meanwhile, revenue in Q4 is expected to increase by 66.3% to 72.8% YoY, to a range of RMB32.76 billion to RMB34.04 billion. Analysts, on average, were expecting revenue of RMB34.79 billion for the three months through the end of December.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around NIO stock remained in the ‘bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’.

A Stocktwits user expects the stock to rally 20% in the short term.

NIO stock is up by 29% this year and by about 20% over the past 12 months.

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