Nio (NIO) handily beat earnings estimates for the third quarter as its electric SUV deliveries climbed 35% sequentially despite a soft China market. Nio also gave a bullish Q4 sales forecast and unveiled a new SUV, as Tesla (TSLA) delivered its first China-made electric car. Nio stock soared.
XThe Chinese maker of electric vehicles narrowed its Q3 loss to 33 cents per share from $1.51 a year ago. Sales rose 20% to $257 million. Analysts were expecting a net loss of 41 cents per share on revenue of $249 million, according to Zacks Investment Research.
Nio delivered 4,799 SUVs in Q3, including 4,196 ES6s and 603 ES8s. That was up from 3,553 deliveries in Q2 and 3,989 in Q1. The company also expects to deliver 20,300 SUVs in all of 2019, up 78% from 2018. Its sales forecast includes a record 8,000 deliveries in Q4.
Although Nio has stemmed losses, it continues to face a severe cash challenge. The company had a cash balance of $274.3 million as of September, which is "not adequate to provide the required working capital and liquidity for continuous operation in the next 12 months," management said in a statement.
New Electric SUV
On Saturday in Shenzhen, Nio unveiled its third production model, the EC6, a premium electric coupe SUV. The EC6 will go from zero to 100 kph in just 4.7 seconds, Nio said. The EC6 is seen as a potential challenger to Tesla's forthcoming Model Y crossover.
The company also announced a 100-kWh battery pack and 20-kW home charger. It expects the battery pack to "significantly improve" the driving range of all Nio electric vehicles.
Details on pricing and specifications of the EC6 are due in July with deliveries to begin in September.
Meanwhile, 15 Tesla employees on Monday received the first Model 3s produced in Tesla's Shanghai factory. Tesla broke ground on the factory a little under a year ago.
Nio Stock Jumps
Shares pared gains sharply, closing up 53.7% at 3.72 after vaulting as much as 101% intraday on the stock market today, but still retaking the 200-day line. It's the biggest one-day gain since Nio stock surged 75.8% a day after its September 2018 debut. Nio stock has been heavily shorted.
Among other Chinese electric-car stocks, Kandi (KNDI) rose 3.6%, and BYD (BYDDF) rose 3.3%.
Tesla stock fell 3.6% as an analyst said the electric vehicle maker will likely fall short of its own target of 360,000-400,000 deliveries for 2019. Fourth-quarter Tesla delivery figures could come later this week. Tesla stock has surged over the last few months to record highs.
General Motors (GM) edged down 0.3%. Ford Motor (F) lost 1.2%.
Nio began deliveries of the seven-seater ES8 and five-seater ES6 in June 2018 and June 2019, respectively.
Its electric SUV sales plunged in the first half of this year amid a massive SUV recall, big layoffs and an exodus of executives.
Find Aparna Narayanan on Twitter at @IBD_ANarayanan.
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The post Why Nio Stock Had Its Biggest One-Day Gain Since Right After The IPO appeared first on Investor's Business Daily.
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