Latest news with #EC6
Yahoo
7 hours ago
- Automotive
- Yahoo
NIO Expects Y/Y Rise in Q2 Deliveries: What are the Growth Agents?
NIO Inc. NIO introduced upgraded versions of four key models, the EC6, ES6, ET5, and ET5T, at the end of May and has recently started deliveries of all four. These models are expected to see their first full month of deliveries in June. On the strength of these new launches, NIO anticipates a year-over-year rise in both June and second-quarter deliveries. The company expects June deliveries in the range of 25,000 and 28,000 units, up from 21,209 units in the same month last year. For the second quarter, NIO expects to deliver between 72,000 and 75,000 vehicles, indicating a 25.5% to 30.7% year-over-year the first quarter of 2025, NIO delivered a total of 42,094 smart EVs, representing a 40.1% year-over-year increase. The deliveries include 27,313 units under the NIO brand and 14,781 from ONVO. Since the beginning of the second quarter, deliveries have gained momentum, driven by the initial rollout of the ET9 and FIREFLY models as well as strong demand for the ONVO L60. FIREFLY is a smart electric high-end small car brand for which deliveries started in late April. NIO carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks local competitors, Li Auto Inc. LI & XPeng Inc. XPEV, also expect year-over-year growth in second quarter deliveries. Li Auto expects its vehicle deliveries for the second quarter of 2025 to range between 123,000 and 128,000 units, indicating year-over-year growth of 13.3% to 17.9%. In the first quarter of 2025, the company delivered 92,864 units, up 15.5% compared to the same period last year. Over the past month, Li Auto has completed a full upgrade of its entire vehicle lineup, introducing updated versions across all expects to deliver around 102,000 and 108,000 vehicles in the second quarter of 2025, indicating year-over-year growth of approximately 237.7% to 257.5%. In the first quarter, XPeng delivered 94,008 units, up 330.8% from 21,821 vehicles delivered during the same period in 2024. NIO has underperformed the Zacks Automotive-Domestic industry year to date. NIO shares have lost 30.1% compared to the industry's growth of 4.1%. Image Source: Zacks Investment Research From a valuation perspective, NIO appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.81, higher than its industry's 0.50. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 and 2026 EPS has moved up 5 cents and declined by a penny, respectively, in the past seven days. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIO Inc. (NIO) : Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Automotive
- Yahoo
NIO Inc (NIO) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges
Total Revenue: RMB12 billion, up 21.5% year-over-year, down 38.9% quarter-over-quarter. Vehicle Sales: RMB9.9 billion, up 18.6% year-over-year, down 43.1% quarter-over-quarter. Other Sales: RMB2.1 billion, up 37.2% year-over-year, down 5.9% quarter-over-quarter. Vehicle Margin: 10.2%, compared to 9.2% in Q1 last year and 13.1% last quarter. Overall Gross Margin: 7.6%, compared to 4.9% in Q1 last year and 11.7% last quarter. R&D Expenses: RMB3.2 billion, up 11.1% year-over-year, down 12.5% quarter-over-quarter. SG&A Expenses: RMB4.4 billion, up 46.8% year-over-year, down 9.8% quarter-over-quarter. Loss from Operations: RMB6.4 billion, up 19% year-over-year, up 6.4% quarter-over-quarter. Net Loss: RMB6.8 billion, increased year-over-year, decreased 5.1% quarter-over-quarter. Vehicle Deliveries: 42,094 units, up 4.1% year-over-year. Q2 Delivery Guidance: Between 72,000 and 35,000, representing 25.5% to 30.7% growth year-over-year. Warning! GuruFocus has detected 4 Warning Signs with NIO. Release Date: June 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NIO Inc (NYSE:NIO) delivered 42,094 smart EVs in Q1 2025, marking a 4.1% year-over-year increase. The company launched and delivered new models including the ES6, EC6, ET5, and ET5T, which are expected to drive significant growth in Q2. NIO Inc (NYSE:NIO) achieved year-over-year growth in both vehicle gross margin and overall gross margin due to cost reduction efforts. The NIO brand's ET9 surpassed BMW 7 Series and Audi A8 in China, marking a breakthrough for a Chinese brand in the premium executive segment. NIO Inc (NYSE:NIO) raised over HKD4 billion in a share offering in Hong Kong, attracting global long-term investors. Total revenues decreased 38.9% quarter-over-quarter, reflecting a seasonal impact on deliveries. Vehicle margin decreased to 10.2% from 13.1% in the previous quarter due to increased manufacturing costs per unit. The company reported a net loss of RMB6.8 billion, showing an increase year-over-year. R&D expenses increased 11.1% year-over-year, driven by new product development and increased personnel costs. SG&A expenses rose 46.8% year-over-year, primarily due to increased personnel costs and sales and marketing activities. Q: How does NIO plan to achieve its target of 30,000 monthly sales for the NIO brand by year-end, given the moderate sales increase guidance for Q2? A: Bin Li, CEO, explained that NIO expects to deliver 25,000 to 28,000 units in June. The company has launched new models like the ES6, EC6, ET5, and ET5T, which are expected to stabilize prices and improve vehicle gross margins by over 10% from the previous generation. NIO aims for a balance between sales volume and selling prices, with a target of 25,000 monthly deliveries for the NIO brand in Q4, representing a 20% year-over-year growth. Q: When will NIO see meaningful contributions from its cost reduction efforts, and can you quantify the expected improvements? A: Yu Qu, CFO, stated that since March, NIO has implemented cost control measures, focusing on short-term returns and efficiency improvements in R&D, logistics, and sales. The company aims for a 15% reduction in R&D expenses in Q2 and plans to control R&D expenses to RMB2-2.5 billion per quarter by Q4. SG&A expenses will be managed carefully, with a target to reduce them quarter-over-quarter and keep non-GAAP SG&A expenses within 10% of sales revenue by Q4. Q: What feedback has NIO received from users after launching the NIO World Model, and how does it compare to previous autonomous driving solutions? A: Bin Li, CEO, mentioned that the NIO World Model (NWM) has been well-received, offering significant improvements in active safety and smart driving experiences. The NWM provides better point-to-point smart driving and parking experiences, with features like automatic toll gate pass-through. The NWM-based version will be released on the NX1931 chip in late June, and ONVO products will also switch to in-house developed smart driving chips in the long term. Q: How does NIO plan to enhance the volume sales of the ONVO L60, and what are the expectations for the L80 and L90 models? A: Bin Li, CEO, explained that organizational and operational adjustments have been made to improve ONVO's sales, with L60 deliveries increasing by over 40% in May compared to April. The L60 has been a top-selling product in its segment, and the L90 will be launched in Q3, expected to be a game-changer in the large space SUV segment. By Q4, NIO aims for a monthly delivery of 25,000 units across the three ONVO models. Q: Can NIO achieve a breakeven in Q4, and what are the assumptions for this target? A: Bin Li, CEO, confirmed that NIO's internal operational target aligns with the assumptions mentioned: achieving over 50,000 monthly sales, a vehicle gross margin of 17-18%, and SG&A expenses within 10% of sales revenue. With improved sales volume, cost reductions, and efficiency improvements, NIO is confident in achieving breakeven in Q4. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Automotive
- Yahoo
NIO's May Deliveries Rise 13% Y/Y But Is That Good Enough?
Chinese electric vehicle (EV) maker NIO Inc. NIO delivered 23,231 vehicles in May, up 13.1% year over year. But the numbers tell a more mixed story on closer look. Deliveries were actually down from April's 23,900 units, and the May growth rate lagged April's 53% jump. The company now operates three EV brands: NIO, ONVO, and Firefly. The main NIO brand, which includes models like the ES6, ET5T, ES8, EC6, ES7, ET5, ET7, EP9, EVE, ET9, and EC7, saw deliveries drop 31% month over month to 13,270 units. That's a concern, given this lineup includes NIO's core premium offerings. Meanwhile, ONVO—NIO's mass-market brand—delivered 6,281 units, up 42% from April. Its first model, the L60 SUV, was launched last September and continues to be well received. Firefly, NIO's smaller premium EV brand, delivered 3,680 units in May, a sharp jump from just 230 in April when it began deliveries of its first model. ONVO and Firefly are gaining momentum, but their growth is seemingly coming at the cost of NIO's namesake brand. This raises concerns about how well NIO can manage and balance its brand portfolio. NIO has bold goals. It wants to double sales in 2025 from 221,970 units delivered last year. This translates into a monthly average run rate of 37,000 deliveries. Since the beginning of the year till May end, the company has delivered 89,225 vehicles—up 34.7% year over year, but still short of what's needed to hit that target. Li Auto LI delivered 40,856 units last month, up 16.7% year over year. The deliveries also improved from 33,939 vehicles sold in April. Not only did Li Auto's year-over-year growth rate in May come in better than NIO's but deliveries also rose month over month. Even in terms of absolute volumes, Li Auto fared better. Deliveries of the Li MEGA Home began in late May, with production ramping up quickly as orders have far surpassed expectations. XPeng Inc. XPEV delivered 33,525 smart EVs last month, marking a whopping 230% increase year over year. With that, XPeng's deliveries surpassed the 30,000 mark for the seventh straight month. However, the deliveries still declined from 35,045 units in April. On May 28, XPeng launched the MONA M03 Max. Shares of NIO have lost around 19% year to date compared with the industry's decline of 0.5%. Image Source: Zacks Investment Research From a valuation standpoint, NIO trades at a forward price-to-sales ratio of 0.46. It carries a Value Score of D. Image Source: Zacks Investment Research Take a look at how the Zacks Consensus Estimate for NIO's earnings has been revised over the past 90 days. Image Source: Zacks Investment Research NIO stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIO Inc. (NIO) : Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
5 days ago
- Automotive
- Business Insider
NIO Is About to Report Q1 Earnings Tomorrow. Here Is What to Expect
Chinese automaker Nio Inc. (NIO) is set to report its first-quarter 2025 results on June 3, before the U.S. market opens. Wall Street analysts expect Nio to report a loss per share of $0.35 for Q1 versus a loss of 0.33 in the same quarter a year ago. Meanwhile, revenues are expected to grow by 26% from the year-ago quarter to $1.74 billion, according to data from the TipRanks Forecast page. Notably, Nio has a disappointing earnings history. The company has missed EPS estimates six times out of the last nine quarters. Confident Investing Starts Here: Ahead of the Q1 print, Morgan Stanley analyst Tim Hsiao maintained a Buy rating on Nio stock with a price target of $5.90 per share. Hsiao believes that Nio's recent rollout of the facelifted ET5 and ET5 Touring models, along with the updated versions of the ES6 and EC6 SUVs introduced on May 16, could enhance the company's competitive standing in China's electric vehicle market. On June 1, Nio delivered 23,231 vehicles in May 2025, marking a 13.1% increase year over year. This figure includes premium smart electric vehicles under the NIO brand, family-oriented vehicles from the ONVO brand, and smart high-end electric vehicles from FIREFLY. Year-to-date, NIO delivered 89,225 vehicles, achieving a 34.7% increase from 2024. As of May 31, the company's cumulative deliveries reached 760,789 units. Main Street Data, NIO delivered a record 72,689 vehicles, marking a 45.2% year-over-year increase. This achievement was driven by strong performance across its brands. Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 9.89% move in either direction. Is Nio a Buy, Sell, or Hold? Overall, Wall Street has a Hold consensus rating on NIO stock based two Buys, seven Holds, and one Sell assigned in the last three months. The average NIO stock price target of $5.07 implies 43.22% upside potential from current levels.
Yahoo
16-05-2025
- Automotive
- Yahoo
Is it Time to Snap Up NIO Stock While it's Still Trading Cheap?
NIO Inc. NIO, once hailed as the 'Tesla of China,' is now trading at just around $4 per share, down roughly 94% from its all-time high attained in 2021 and even below its 2018 IPO price of $6.26. For a company that once captured investor imagination with bold electric vehicle (EV) ambitions, the fall has been steep. In 2018, NIO's debut on the NYSE was met with considerable excitement. Fast forward to 2025, and the company is operating at a much larger scale with a wider vehicle lineup, new brand launches, and long-term plans still intact. Yet, the stock remains under pressure. So far in 2025, NIO shares have slipped nearly 8%. Meanwhile, domestic peers Li Auto LI and XPeng XPEV have surged 19% and 74%, respectively. XPeng, in particular, has gained traction thanks to its aggressive push into autonomous driving and robotics. Image Source: Zacks Investment Research From a valuation perspective, NIO currently trades at a forward price-to-sales ratio of 0.54, well below Li Auto's 1.1 and XPeng's 1.53. The market seems to be pricing in more risk for NIO despite its growth initiatives. That brings up a key question: Is the current discount an opportunity or a value trap? Image Source: Zacks Investment Research Let's delve into NIO's growth drivers and challenges to evaluate if investors should park their cash in the stock at this time. NIO's vehicle lineup includes ES6, ET5T, ES8, EC6, ES7, ET5, ET7, EP9, EVE, ET9 and EC7 models. In late March 2025, the company commenced delivery of the NIO ET9. But it's not just the namesake brand driving growth anymore. To tap into different segments of the EV market, NIO has launched two sub-brands: ONVO, targeting the mainstream market, and Firefly, aimed at smaller premium EVs. ONVO's first model, the L60, has already hit the market and is seeing a positive response. The brand's second model, the L90, is scheduled for delivery in the third quarter of 2025, followed by the launch of a third ONVO vehicle in the fourth quarter. Firefly's first model commenced deliveries last month. In April 2025, NIO delivered 23,900 vehicles, up 53% year over year. This included 19,269 units from the main NIO brand, 4,400 ONVO units and 231 Firefly vehicles. While the growth is encouraging, it still lags behind peers. Li Auto delivered 33,939 units last month, while XPeng saw 273% growth with 35,045 units. NIO expects to double its deliveries in 2025, driven by fresh models and expanded brand reach. One of NIO's standout innovations is its battery swap technology, allowing users to swap batteries in minutes instead of waiting to charge. With over 3,200 swap stations in place and a new partnership with CATL to build the world's largest battery swap network, NIO is doubling down on this unique selling point. On the margin front, things are moving in the right direction. Thanks to component cost reductions and better scale, vehicle margins have improved — from 9.2% in first-quarter 2024, to 12.2% in the second quarter to 13.1% in the third quarter and the fourth quarter each. For 2025, the company is targeting a vehicle margin of 20% for the NIO brand. Despite these operational improvements, NIO remains deep in the red. The company posted a net loss of more than $3 billion in 2024. Management expects these losses to narrow this year and has set an ambitious target to break even by the fourth quarter of 2025. Achieving breakeven would mark a major turnaround—but it won't be easy. China's EV market is highly competitive, with price wars putting pressure on all players. For NIO, hitting profitability amid these dynamics is still a big 'if.' There are also cost issues. In the last quarter of 2024, SG&A expenses jumped 22.8% year over year due to rising headcount and more aggressive sales efforts. This trend is expected to continue, potentially weighing on margins. On top of that, financial constraints are tightening. NIO's long-term debt-to-capital ratio stands at 0.76, well above the industry average of 0.27. And its cash reserves fell sharply, from RMB 32.9 billion in December 2023 to just RMB 19.4 billion a year later. This raises concerns around potential fundraising and possible shareholder dilution. NIO's growth story is still alive. Its push into new market segments with ONVO and Firefly, rising vehicle margins, and expanding battery swap network are all promising signs. If management can deliver on its breakeven target and scale up production efficiently, the stock could rebound over the long term. The Wall Street average target price for NIO indicates a 17% upside from the current levels. Image Source: Zacks Investment Research But right now, uncertainty around profitability, competitive pressure and a shrinking cash cushion make the stock a risky bet for new investors. For existing shareholders, holding on may still make sense given the long-term potential. But for those considering a fresh position, it might be wise to wait for stronger financial signals and execution milestones. NIO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIO Inc. (NIO) : Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
