NIO’s ET5 is displayed at the Central China International Auto Show in Wuhan, China, on May 25, 2023.

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Chinese electric car maker Nioh It lost $835.1 million in the second quarter, more than double its loss a year earlier, as deliveries of its premium electric vehicles slumped due to a transition to a newer vehicle platform and a broader economic slowdown in China.

Here are the key numbers from NIO’s second-quarter earnings Reportcompared with Wall Street estimates reported by Refinitiv.

  • income: 8.77 billion yuan ($1.21 billion), compared with expectations for 9.25 billion yuan.
  • Adjusted loss per share: 3.28 yuan (45 cents), against expectations of 2.45 yuan.

Shares of the company fell more than 6% in premarket trading following the news.

NIO’s adjusted figure excludes share-based compensation expenses. On a GAAP basis, the company reported a net loss of $835.1 million, or 51 cents a share.

In yuan terms, the company posted a net loss of $6.06 billion, or 3.70 yuan per share. A year ago, Nio reported a net loss of 2.76 billion yuan, or 1.68 yuan per share, on revenue of 10.29 billion yuan.

Nio’s automotive gross margin in the second quarter was 6.2%, lower than the 16.7% in the same period last year, but higher than the 5.1% in the first quarter of 2023.

NIO launched a facelifted version of its mainstream ES6 crossover in May on its new “NT2.0” platform, and a wagon version of its ET5 sedan in June. The refreshed lineup has already led to better results, with 20,462 vehicles delivered in July alone.

The company delivered just 23,520 vehicles in the second quarter as it sold the last batch of soon-to-be-discontinued models at deep discounts.

Li Bin, Nio’s chief executive, said in a statement that the July results were enough to put Nio at the top of China’s sales charts for electric cars priced above 300,000 yuan ($41,000) for the month.

“We expect a steady increase in vehicle deliveries in the second half of 2023,” he said.

NIO also expanded its balance sheet in July, closing a $738.5 million equity investment from a fund controlled by the Abu Dhabi government on July 12. As of the end of June, the company had $4.3 billion in cash and equivalents on hand.

Nio now expects to deliver 55,000 to 57,000 vehicles in the third quarter, well above the 31,607 electric vehicles it will deliver in the third quarter of 2022. The company expects revenue for the period to fall from $1.83 billion to between $2.61 billion and $2.69 billion. in the period a year ago.

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