The price of NIO (NYSE:NIO) was lower after the company’s third-quarter showed weaker earnings and tepid management guidance.
NIO – Daily Chart
The price of NIO has bounced at the $4.50 level and now has potential to move higher. A move above $5 can open up the potential for higher prices.
NIO announced a third-quarter adjusted loss per share of 31 cents on sales of $2.7 billion. Wall Street analysts were looking for a loss of 20 cents a share on sales of $2.7 billion. Gross profit margins were almost 11% for the quarter, which were a little higher than Wall Street analysts projected.
NIO delivered 61,855 vehicles in the third quarter, up 12% from the 55,432 delivered in the third quarter of 2023. However, vehicle revenue dropped around -4% year over year. Chinese automakers have been posting slower growth in revenue than deliveries in 2024 due to tough competition.
NIO expects to ship 72,000 to 75,000 vehicles in the fourth quarter, up around 44% to 50% year over year. That would be similar to the 45% to 51% year-over-year growth projected by NIO’s rival XPeng.
NIO management now expects fourth-quarter revenue to rise by around 17% to $2.9 billion, which came in lower than Wall Street’s estimate for sales of nearly $3.2 billion.
The stock did not react too badly to the results as analysts have grown weary to the slow growth in Chinese EV companies. NIO stock was lower by almost -50% ahead of the earnings and lower prices and higher competition have hurt investor sentiment.
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