EV stocks like NIO has been surging recently. The company is reporting earnings after market close on Tuesday. Here’s what you can expect.
The consensus view of Wall Street analysts polled by Thomson Reuters is that NIO will report a loss of $0.17 per share on revenue of $653.73 million. That would be a significant improvement over its results in the third quarter of 2019, when it lost $0.35 per share on revenue of just $257 million.
The high points of NIO’s third quarter
- NIO delivered 12,206 vehicles in the third quarter, up 154% from the third quarter of 2019.
- Deliveries fell month-over-month in July due to parts shortages, but more than bounced back in August and jumped again in September.
- NIO took advantage of its surging stock price to sell 88.5 million new shares in August, raising about $1.7 billion.
- It used about $1.1 billion of the proceeds to buy back some of the equity it gave up as part of a bailout deal earlier in the year.
- Leveraging its network of automated battery-swap stations, NIO launched a “batteries-as-a-service” program in August. Buyers can now buy a NIO vehicle with a subscription to the battery-swap service in lieu of a battery pack. That lowers the initial price for the consumer while creating an ongoing revenue stream for NIO.
- The battery packs are bought from NIO and leased to customers by a joint-venture company that includes NIO, battery giant Contemporary Amperex Technology Limited (often known as CATL), and two financing companies.
- Deliveries of NIO’s newest model, a sporty crossover called the EC6, began in September as planned.
What to expect
NIO’s stock has had a dramatic run since the company’s brush with bankruptcy in early 2020. Its price might be due for a pullback — but I don’t think the earnings report will be the catalyst that triggers one. I expect a loss that’s slightly better than Wall Street’s forecast, revenue roughly in line with the estimate, some good news on costs, and no bad surprises. We’ll find out on Tuesday after market close.
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