Nio Stock: Widening Losses Despite Sales Surge

Chinese electric vehicle manufacturer Nio reported a significant increase in its net loss for the fourth quarter of 2024, with the deficit attributable to shareholders rising to 7.13 billion yuan ($977.05 million) compared to 5.59 billion yuan in the same period last year. This translates to a loss per share of 3.45 yuan ($0.47), up from 3.18 yuan in Q4 2023. The adjusted net loss also expanded to 6.55 billion yuan from 4.95 billion yuan year-over-year.

Positive Delivery Growth Amid Market Challenges

Despite the growing losses, Nio demonstrated strong operational performance with vehicle deliveries jumping 45.2% to 72,689 units in the fourth quarter, compared to 50,045 units in the same period of 2023. Revenue increased to 19.70 billion yuan ($2.70 billion) from 17.10 billion yuan previously. The company also achieved notable margin improvements, with gross margin climbing to 11.7% from 7.5% and vehicle margin reaching 13.1%. Looking ahead, Nio projects Q1 2025 deliveries between 41,000 and 43,000 vehicles, representing growth of 36.4% to 43.1% year-over-year. However, investors responded negatively to the results, with Nio's stock falling 6.1% to $4.86 in New York trading, well below its 52-week high of $7.64.

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Source StockWorld