NIO Q3 2021 Earnings Overview: Strong Revenue Growth Amid Higher Losses

NIO's Q3 2021 earnings revealed a mixed performance with revenue surpassing expectations while losses widened.

Highlights

• NIO achieved 24,439 vehicle deliveries in Q3, outperforming analyst predictions.
• Vehicle sales remain the primary revenue driver and reflect both market demand and production capacity.
• Despite ongoing supply chain disruptions, NIO projects Q4 deliveries between 23,500 and 25,500 vehicles.

Source: Analyst consensus data from Visible Alpha

Financial Performance Analysis

NIO Inc. (NYSE: NIO) reported a loss per share of RMB 1.82 ($0.28) in Q3 2021, more than double the anticipated loss, signaling increased operational costs or challenges. Nevertheless, revenue surged 116.6% year-over-year, driven by strong vehicle sales. Despite beating revenue forecasts and exceeding delivery estimates, shares declined over 2% in after-hours trading. Over the past 12 months, NIO's stock returned -7.7%, trailing the S&P 500's 32.0% gain.

Note: This report references NIO's American Depositary Shares (ADS) listed on the NYSE.

Vehicle Deliveries Breakdown

The majority of NIO's revenue stems from vehicle sales. In Q3 2021, NIO delivered 24,439 vehicles, marking a 102.2% increase compared to the same quarter last year. Breakdown by model includes:

• 5,418 units of ES8, the flagship 6- and 7-seater premium smart electric SUV.
• 11,271 units of ES6, a 5-seater high-performance premium electric SUV.
• 7,750 units of EC6, a 5-seater premium electric coupe SUV.

These delivery figures demonstrate strong consumer demand and NIO's expanding production capabilities despite persistent supply chain hurdles, including the global semiconductor shortage. The company reported a 27.5% year-over-year decline in October deliveries due to manufacturing upgrades, new product preparation, and supply chain volatility.

William Bin Li, NIO's founder, chairman, and CEO, stated, "Despite ongoing supply chain challenges, our teams and partners are collaborating closely to secure supply and production for Q4 2021."

Vehicle sales revenue reached RMB 8.6 billion, doubling from the previous year and constituting approximately 88% of total quarterly revenue. The vehicle gross margin improved to 18.0% from 14.5% a year earlier, reflecting higher average selling prices and reduced material costs.

Outlook for Q4 2021

NIO anticipates Q4 vehicle deliveries between 23,500 and 25,500 units, representing a 35.4% to 46.9% increase year-over-year. Revenue is projected to grow between 41.2% and 52.2% compared to Q4 2020.

The company's Q4 2021 earnings report is expected on February 28, 2022.

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