Shares of NIO Inc. (NIO) are on the rise on Tuesday after the electric vehicle maker announced a joint venture with E-Town Capital, which will invest $1.45B in the new entity. NIO also reported a first-quarter loss of (36c) and vehicle sales of $226.8M, down 54.6% compared to the fourth quarter of 2018.
QUARTERLY RESULTS: NIO reported a loss per share for the first quarter of (36c) on total revenues of $243.1M. Vehicle sales were $228.8M, down 54.6% compared to the fourth quarter of 2018, while deliveries of the ES8 reached 3,989 for the quarter, compared with 7,980 vehicles delivered in the fourth quarter. Additionally, the company said vehicle margin was negative (7.5%) and gross margin was negative (13.4%) compared with positive 3.7% and 0.4%, respectively, in the fourth quarter of 2018. "Looking ahead to the second quarter, we expect an even more challenging sales environment and anticipate overall sequential demand and deliveries to decrease, as competition continues to accelerate and the general automobile market in China remains muted," said NIO Chief Financial Officer Louis Hsieh. "Against this backdrop, NIO is focusing on rolling out our ES6 nationwide, and at the same time, improving overall network utilization and operating efficiencies."
JOINT VENTURE: NIO will form a joint venture with Beijing E-Town International Investment and Development, which will invest $1.45B in the new entity, according to Reuters, citing a statement by the electric vehicle maker. E-Town Capital will support a new manufacturing facility for NIO's next-generation platform 2.0 vehicles, it said, adding the parties are continuing to work toward a final binding definitive agreement on the investment.
PRICE ACTION: In afternoon trading, shares of NIO have gained almost 5% to $4.04.
Comments
Log in or sign up to join the conversation.