Chinese Tesla drops after results


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( — Nio Inc. stumbled 6% pre-market on Wall Street, to a three-month low, following the publication of a heavier-than-expected loss and mixed outlook. Net loss for the second quarter was 2.26 billion yuan, about $337 million, from 774 million yuan a year earlier. Excluding items, the ADS-adjusted loss was 1.34 yuan, versus -1.13 yuan in FactSet consensus. Total revenue rose 22% to 10.29 billion yuan, $1.54 billion, which on the other hand exceeded market expectations (consensus 9.8 billion yuan). Unit deliveries increased by 14% to 25,059 vehicles. The gross margin contracted to 13%, against 18.6% a year earlier. For the third quarter, the group expects revenues ranging from 12.85 to 13.6 billion yuan, well below expectations (16.4 billion), for deliveries ranging from 31,000 to 33,000 units.

Steven Wei Feng, chief financial officer of the Chinese electric car manufacturer, sees the bright side and talks about “solid financial results” quarterly, despite “incredible challenges” and cost volatility.


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