Key Takeaways

  • NIO delivered 21,896 vehicles in the second quarter, beating analyst estimates.
  • Vehicle deliveries provide an indication of demand for NIO's main source of revenue as well as the company's productive capacity.
  • NIO expects to deliver between 23,000 and 25,000 vehicles in Q3 FY 2021 despite still facing a number of supply chain challenges.
NIO Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Earnings Per Share Beat RMB -0.42 RMB -0.48
Revenue Beat RMB 8.4B RMB 8.3B
Vehicle Deliveries Beat 21,896 21,050

Source: Predictions based on analysts' consensus from Visible Alpha

NIO Financial Results: Analysis

NIO Inc. (NIO) reported Q2 FY 2021 earnings that beat analyst estimates. The company posted a loss per share of RMB0.42 ($0.06), a smaller loss than what analysts expected. Revenue also surpassed expectations, rising 127.2% year over year (YOY). NIO's vehicle deliveries, which were reported at the beginning of July, came in at 21,896 for the quarter, exceeding analysts' forecasts. The company's shares dipped slightly in post-market trading. Over the past year, NIO's shares have provided a total return of 238.5%, well above the S&P 500's total return of 33.4%.

Note that NIO shares referred to throughout this story represent NYSE-listed American depositary shares (ADS) with the ticker NIO.

NIO Vehicle Deliveries

Most of NIO's revenue is generated through the sale of vehicles. NIO delivered a total of 21,896 vehicles in Q2 FY 2021, up 111.9% from the year-ago quarter. Total vehicle deliveries can be broken down into deliveries of three models:

  • 4,433 ES8s, the company's 6-seater and 7-seater flagship premium smart electric SUV
  • 9,935 ES6s, the company's 5-seater high-performance premium smart electric SUV
  • 7,528 EC6s, the company's 5-seater premium electric coupe SUV

The number of vehicle deliveries provides an indication of the demand for NIO's vehicles as well as the company's ability to scale production. NIO has faced a number of supply chain issues this year, including challenges related to the global semiconductor shortage. The company was forced to shut down one of its factories for five days near the end of the first quarter due to the chip shortage.

"While the global supply chain still faces uncertainties, we have been working closely with our partners to improve the overall supply chain production capacity," said William Bin Li, company founder, chairman, and chief executive officer.

Total vehicle sales were RMB7.9 billion, up 127.0% compared to the year-ago quarter. Vehicle sales accounted for about 93.7% of NIO's total revenue for the quarter. The company's vehicle margin, a measure of gross margin for vehicle sales, was 20.3% compared to 9.7% in the year-ago quarter. When vehicle margin is higher, it means that more vehicle sales are being generated relative to the costs of making those vehicles. NIO said that the YOY rise in its vehicle margin was driven by an increase in vehicle delivery volume, higher average selling prices, and lower material costs.

NIO Vehicle Delivery and Revenue Outlook

NIO expects vehicle deliveries for Q3 FY 2021 to be between 23,000 and 25,000, which would represent a YOY increase of approximately 88.4% to 104.8%. It expects revenue to rise between 96.9% and 112.8% compared to the third quarter of FY 2020.

NIO's next earnings report (for Q3 FY 2021) is estimated to be released on Nov. 15, 2021.