NIO Q2 Earnings: Revenue of $1.53bn, expects to deliver 31-33k vehicles in Q3

Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter

The electric vehicle maker NIO announced on Wednesday its Q2 earnings results reporting a revenue of $1.536 billion, an increase of 21.8% from the second quarter of 2021. As of June 30, the company had cash and cash equivalents of RMB54.4 billion ($8.1 billion).

The company reported an increase in revenue of 21.8% year over year and an increase of 3.9% from the first quarter of 2022. The vehicle margin was 16.7%, down from the 20.3% achieved in Q2 2021 and from the 18.1% in the first quarter of the year.

Regarding the decrease of vehicle margin over the second quarter of 2021 and the first quarter of 2022 was “mainly attributed to the increased battery cost per unit, which was partially offset by favorable changes in sales mix of the ET7”.

The EV manufacturer said the increase in cost of sales over the second quarter of 2021 was “mainly driven by the increase of delivery volume and higher material cost per vehicle in the second quarter of 2022”. NIO added that the increase in cost of sales over the first quarter of 2022 was attributed “to the higher material cost per vehicle”.

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NIO CEO William Li commented, “We delivered 25,059 vehicles in the second quarter of 2022, representing a growth of 14.4% year-over-year despite the COVID-19 related challenges. With the teams’ concerted efforts, our deliveries started to recover and achieved 10,052 and 10,677 units in July and August, respectively”.

“The second half of 2022 is a critical period for NIO to scale up the production and delivery of multiple new products. The ES7, our first mid-large five-seater smart electric SUV based on NIO Technology 2.0 (NT2.0), has become a new favorite of the market with its superior performance, comfort and digital experience. We witnessed a robust order inflow for the ES7 and started its deliveries at scale in August. We also look forward to starting the mass production and delivery of the ET5 in late September. With the compelling product portfolio and well-established brand awareness, NIO will attract a broader user base and embrace robust growth in the coming quarters,” he added.

“We achieved solid financial results for the second quarter of 2022 in spite of the tremendous challenges and cost volatilities,” added Steven Wei Feng, chief financial officer of NIO. “With the ET7 setting sail to Europe in August, users in more countries will experience our new products and services later this year. To meet the growing EV demand of the global market, we have been working closely with our partners to ramp up the production and deliveries of our new products. We also expect to further expand our market share in the global premium smart electric vehicle market with high operating efficiency. “

Last week, the company announced the delivery of 10,677 units in July 2022, representing an increase of 81.6% when compared to the same period in 2021 and an increase of 6.22% sequentially. The deliveries consisted of 7,551 SUVs (ES8, ES6, EC6 and ES7) and 3,126 ET7s.

Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter

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