Nio Rises 3% After Surpassing Q1 Estimates

However, the Chinese electric vehicle maker could fall short of the delivery target if the chip shortage continues.
May 01,2021,00:48
Nio Rises 3% After Surpassing Q1 Estimates

The stock in Nio (NYSE: NIO) gained 3% Friday, trading at $40.15 per American depositary share as of midday after the company posted a first-quarter report that beat forecasts.

The Chinese electric vehicle giant said in a statement Thursday after the markets closed that its revenues hit $1.22 billion, up 482% year-over-year, on an adjusted non-GAAP loss of 23 cents per share. Wall Street was expecting revenues of $1.1 billion on losses of 84 cents.

Nio generated $1.13 billion from vehicle sales in the first three months of 2021. Overall, Nio's deliveries accelerated 423% year-over-year to 20,060 vehicles.

Nio's EV rivals XPeng (NYSE: XPEV), Li Auto (Nasdaq: LI), and Tesla (Nasdaq: TSLA) were sent higher as well. Intraday, shares were trading 10 cents, 2%, and 3% higher, respectively.

Meanwhile, one problem looms over the EV space: The industrywide chip shortage, which has impacted production. In a post-earnings call, Nio's management referred to the situation as "very severe."

"NIO started the year of 2021 with a new quarterly delivery record of 20,060 vehicles in the first quarter, representing a strong growth of 422.7% year over year," William Bin Li, the founder, chairman, and chief executive officer of NIO said in a statement today.

"The overall demand for our products continues to be quite strong, but the supply chain is still facing significant challenges due to the semiconductor shortage. In light of the strong momentum under a volatile macro environment, we expect to deliver 21,000 to 22,000 vehicles in the second quarter of 2021."

That guidance range for the three months ending June might fall short of Deutsche Bank analyst Edison Yu's target. Yu has forecasted full-year 2020 deliveries for Nio to reach 95,000 units. Assuming Nio delivers 22,000 vehicles over each of the next three quarters, it falls short of Yu's estimate. Meeting the 95,000 unit mark for the full year might be difficult if supply constraints continue.

Yu currently rates Nio's shares as a "buy" with a $60 price target.

For the second quarter, Nio expects to generate revenues in the range of $1.24 billion to $1.3 billion, representing year-over-year growth of between 119% to 129%.

XPeng;Nio;Tesla;Li Auto;Deutsche Bank.