Chinese EV Maker NIO Stock Soars on strong Q3 Earnings

(Source: NIO)

Chinese electric vehicle manufacturer NIO (NYSE:NIO) stock soared on December 30 as the company’s Q3 performance beat expectations from last quarter.

The company’s stock price closed at $3.72, increasing by 53.72%, while that of Tesla dropped by 3.64%. NIO was valued at $3.9 billion.

NIO’s earnings surprise came against its previous recall crisis and the gloomy Chinese new energy auto market. In November, the sales of new energy vehicles fell 43.7%, according to the China Association of Automobile Manufacturers.

NIO’s revenues in the third quarter came in at 1.8 billion yuan ($257.0 million), beating the high end of analysts’ expectations by 10.5%. revenue saw a 25% year-on-year growth and a 21.8% quarterly growth.

SEE ALSO: NIO Shares Surge After Exceeding Expectations in Q3

Most of NIO’s revenue came from vehicle sales, which reached 1.7 billion yuan ($242.5 million) with a 22.5% increase from Q2 2019 and a 21.5% increase from the same quarter of 2018.

The company delivered 4,799 ES6 and ES8 electric vehicles during the quarter, a 35% jump over Q2 2019.

“The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China. Despite the challenges, NIO’s sales improved solidly since September,” said William Bin Li, founder, chairman and chief executive officer of NIO.

Two days before the earnings report came out, NIO unveiled its third production model, the EC6, a smart premium electric coupe SUV and the flagship smart premium electric SUV ES8. Deliveries of both modules are expected to start from next year.

Tesla delivered its first China-made Model 3s on the same day when NIO released its Q3 earnings report. Tesla will ramp up production during January, starting its large-scale deliveries.