Nio is increasing sales and vehicle margins as it readies its lower-priced brand for deliveries.Fool.com contributor Parkev Tatevosian elaborates on what the latest developments could mean for Nio (NIO 3.50%) stock investors. *Stock prices used were the afternoon prices of Sept. 4, 2024. The video was published on Sept. 6, 2024. ...

Rafmaster NIO Inc. (NYSE:NIO) reported results for its second fiscal quarter on Thursday that met expectations on EPS, but missed on revenues. Nonetheless, shares surged 14% on a strong outlook as well as an improving margin profile. The electric vehicle company currently delivers approximately 20,000 units per month to consumers, mostly in China, and continues to see strong revenue growth as well. The outlook for Q3'24 implies that the EV maker expects this production/delivery volume to hold in the near te ...

NIO Inc. (NIO) incurred a loss per American Depositary Share of 34 cents in the second quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 46 cents. The company had reported a loss of 51 cents in the year-ago quarter.This China-based electric vehicle maker posted revenues of $2.40 billion, which beat the Zacks Consensus Estimate of $2.35 billion and rose 98.3% year over year due to higher delivery volumes.Key DetailsNIO delivered 57,373 vehicles in the second quarter, up 143.9% year ove ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page. Considering buying Nio stock? Here’s what analysts think: ...

Investment Rating - The report maintains a HOLD rating for NIO Inc. with a target price reduced from US$5.60 to US$5.10, indicating a potential upside of 5.2% from the current price of US$4.85 [2][3]. Core Insights - NIO's 2Q24 earnings were mixed, with a quarter-over-quarter rise in gross profit offset by increased R&D and SG&A expenses, leading to a net loss of RMB5.1 billion [2]. - The company is projected to see significant sales volume growth in FY25/26, with estimates of 324,000 and 400,000 units respectively, driven by new brands Onvo and Firefly [2]. - Despite the anticipated sales growth, the report expresses skepticism about NIO's ability to achieve breakeven due to high ongoing expenses related to R&D and SG&A, particularly with the introduction of new brands [2]. Financial Summary - Revenue projections for FY24E are set at RMB66,730 million, with a year-over-year growth of 20.0%, and for FY25E at RMB89,501 million, reflecting a 34.1% increase [3][7]. - Gross margin is expected to improve from 5.5% in FY23A to 9.7% in FY24E and further to 11.1% in FY25E [3][7]. - The net profit forecast for FY24E is a loss of RMB18,693 million, improving to a loss of RMB16,734 million in FY25E [3][7]. Earnings Revision - The report revises FY24E revenue upwards by 7.6% and FY25E revenue by 12.1% compared to previous estimates [6]. - Gross profit estimates for FY24E and FY25E have been increased significantly, reflecting a 38.6% and 30.8% rise respectively [6]. - Operating and net profit forecasts remain negative, with operating losses projected at RMB19,909 million for FY24E and RMB17,991 million for FY25E [6]. Sales Volume and Margins - NIO's sales volume for 2Q24 was reported at 57,373 units, a 143.9% increase year-over-year, although the average selling price (ASP) decreased by 18.5% [6]. - The gross profit for 2Q24 was RMB1.689 billion, marking a significant year-over-year increase of 1842.0% [6]. - The report anticipates that even with a projected sales volume of 400,000 units annually, NIO may still struggle to achieve profitability due to high costs [2][6].

6 Sep 2024 CMB International Global Markets | Equity Research | Company Update NIO Inc. (NIO US) New brands unlikely to help NIO break even Maintain HOLD. We are of the view that NIO's 2Q24 earnings were mixed as the QoQ rise in gross profit was offset by the increases in R&D and SG&A expenses. We project FY25/26 sales volume to surge 54%/23% YoY to 324,000/400,000 units, respectively, contributed by the Onvo and Firefly brands. However, we believe such top-line growth with GPM expansion is still far away f ...

Andy FengArticle Thesis NIO Inc. (NYSE:NIO) reported solid quarterly earnings results, which sent NIO's shares soaring on Thursday. We will take a look at NIO's compelling growth in sales volumes and its margin trajectory. NIO's results have implications for other companies as well, such as automobile manufacturers from Europe and the US that face increasing competition from Chinese EV players. What Happened? NIO Inc. reported its quarterly earnings results for its fiscal Q2 on Thursday morning. The hea ...

Shares of NIO Inc. NIO may continue to rally. Some potentially bullish dynamics have appeared on the chart.Markets don't go in straight lines. They are more like a series of trading ranges that could look like a staircase. If the market is trending lower, what was the bottom of one trading range could become the top of the next range.If a market or a stock is trending lower, many investors and traders experience buyer's remorse. They buy a stock only to watch the price drop.Buyer's remorse can turn what was ...

The electric vehicle maker finally gave patient investors a solid reason to cheer.Nio (NIO 12.74%) stock had one of its best days in recent weeks today, flying 12% higher as of 12:40 p.m. ET Thursday.After losing more than 50% value in the first half of 2024, Nio stock looked primed to rebound on its next earnings report in anticipation of higher revenue and better margins. The company didn't disappoint, giving investors a chance to grab the electric vehicle (EV) stock today.Nio's deliveries and margins are ...

Financial Data and Key Metrics - Total revenue for Q2 2024 reached RMB17.4 billion, up 98.9% YoY and 76.1% QoQ [14] - Vehicle sales revenue was RMB15.7 billion, increasing 118.2% YoY and 87.1% QoQ, driven by higher deliveries [15] - Vehicle margin improved to 12.2% in Q2, up from 6.2% in Q2 2023 and 9.2% in Q1 2024, due to cost optimization and lower material costs [17] - Gross margin improved to 9.7%, compared to 1% in Q2 2023 and 4.9% in Q1 2024 [17] - Net loss decreased to RMB5 billion, down 16.7% YoY and 2.7% QoQ [18] Business Line Performance - NIO delivered 57,373 units in Q2, a 143.9% YoY increase, with monthly deliveries exceeding 20,000 units for four consecutive months [6] - The company expects Q3 deliveries to be between 61,000 and 63,000 units [7] - NIO's market share in China for BEVs priced above RMB300,000 exceeded 40% [6] - ONVO, the mass-market brand, will launch its first model, L60, in September 2024, with deliveries starting in late September [9] Market Performance - NIO has expanded its international presence, with the UAE website going live in August 2024 and product launches planned for Q4 2024 [11] - The company aims to make its charging network available in every county in mainland China by the first half of 2025 and expand the swapping network to over 2,300 counties by the end of 2025 [10] Strategic Direction and Industry Competition - NIO introduced SkyOS, a full-domain operating system, and Banyan 3.0, a smart system, enhancing its technological capabilities [7] - The company is focusing on cost optimization, supply chain efficiency, and expanding its user community to drive growth [6][7] - NIO plans to leverage its multi-brand strategy, including NIO, ONVO, and Firefly, to cover a wide price range from RMB140,000 to RMB800,000 [54] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of expanding the charging and swapping network to support sales growth and market reach [10] - The company is confident in its ability to maintain a strong market position in the premium EV segment, despite intense competition [52] - NIO aims to achieve a monthly delivery volume of 40,000 units for the NIO brand and a vehicle margin of 25% in the long term [27] Other Important Information - NIO has over 2,561 power swap stations globally and has completed over 52 million swaps [10] - The company has installed over 23,000 power chargers and destination chargers [10] - NIO's R&D expenses were RMB3.2 billion in Q2, down 3.8% YoY but up 12.4% QoQ due to increased design and development costs [17] Q&A Session Summary Question: ONVO L60 Pre-Orders and Supply Chain Preparation - The company is confident in the competitiveness of the L60 model, with pre-orders surpassing expectations [22] - NIO plans to achieve a supply capacity of 10,000 units by the end of 2024 and 20,000 units per month in 2025 [23] Question: NIO Brand Vehicle Sales and Margin Upside - NIO aims to improve vehicle margins to around 15% by the end of 2024, driven by cost optimization and product mix improvements [25] - The long-term target for the NIO brand is a monthly delivery volume of 40,000 units and a vehicle margin of 25% [27] Question: ONVO L60 Volume Target and SG&A Expenses - Most L60 deliveries in 2024 will occur in Q4, with monthly deliveries expected to reach 10,000 units by December [31] - SG&A expenses are expected to increase due to the launch of L60, but the company will optimize expenses relative to sales revenue [32] Question: ONVO L60 Gross Margin and Capacity Expansion - The L60 model is expected to achieve a 15% gross margin at scale, with production capacity supported by two factories and a third factory planned for Q3 2025 [36][37] Question: NOP Progress and Market Competition - NIO's NOP Plus is used by over 300,000 users, with cumulative mileage exceeding 1.1 billion kilometers [48] - The company is confident in its diversified product portfolio and technological advantages to counter market competition [52] Question: ET9 Launch and Overseas Expansion - The ET9 launch is on schedule for Q1 2025, with the model featuring advanced technologies like steer-by-wire and fully active suspension [59] - NIO's international expansion will focus on existing European markets and the UAE, with plans to introduce ONVO and Firefly products globally [60] Question: China EV Market Growth and Firefly Pipeline - The company expects the penetration rate of new energy vehicles in China to surpass 80% in the next 2-3 years [65] - Firefly will launch one or two models in 2025, with product preparation progressing smoothly [66] Question: SkyOS and Other Sales Gross Margin - SkyOS is a comprehensive operating system that enhances vehicle safety, stability, and R&D efficiency [70] - The company expects the profitability of other sales, including charging and battery swap services, to improve as the user base grows [72]