Nio stock drops late in fourth-quarter earnings mix report; Delivery in February is slow

New (NIOIt missed the fourth-quarter final profit estimate but exceeded the top-line forecast after the Chinese electric car competition Lee Otto (In the) I reported a windfall profit last week. Nio shares fell late.

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Niu earnings

Estimates: Late Monday Nio, better known as Tesla (TSLA) From China, the net loss will likely narrow to 7 cents per ad from 39 cents a year ago as revenue rose 148% to $ 1.01 billion.

consequences: Share lost 14 cents in revenue of $ 1.02 billion. Nio has already revealed that fourth-quarter 2020 deliveries jumped 111% to 17,353 cars, and grew for the third consecutive quarter after the pandemic spread in early 2020. Its new, sporty and youthful luxury electric crossover EC6 has outperformed its two electric SUVs. The oldest – ES8 and ES6 – is in December. Sales momentum slowed to 5,578 vehicles in February from 7,225 vehicles in January, although both rose by three numbers year-on-year.

Meanwhile, in January Nio announced the ET7 electric sedan, a competitor to the Tesla Model 3 next year, and plans to expand into Europe in 2021. As Nio expands, Wall Street will watch the impact on margins and production costs. Gross margin improved to 17.2% in the fourth quarter from -8.9% a year earlier and 12.9% in the third quarter. The car’s margin improved by 17.2% from -6% last year and 14.5% in the third quarter.

Nio’s cash balance jumped to $ 6.5 billion at the end of the quarter from $ 3.3 billion in the third quarter.

Prospects: Nio expects first-quarter deliveries of 20,000 to 20,500 vehicles, an increase of 421% -434% over the previous year and a 15% -18% increase over the fourth quarter. Revenue is expected to range between $ 1.13 billion – $ 1.16 billion, an increase of about 438% -451% over the previous year and an increase of 11% -14% over the fourth quarter.

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Nio Stock

The shares fell 4.8% late after closing 8.7% higher at 49.76 on Monday Stock market trading. Nio stock remains below 50 days after the failed breach of 57.30 buy points, according to MarketSmith Chart Analysis. The Relative strength lineFor Nio, which compares the stock’s performance against the S&P 500, it rose in 2019 and 2020 but is now below its January 2021 high.

Among other electric car stocks, Li Auto gained 1.9% on Monday Exping Motors (XPEV), Which is announced on March 8, at 4.1%. Tesla added 6.4%.

The Workhorse Group (WKHSThe rally reversed sharply, ending a gain of 7.2% despite a much wider-than-expected quarterly loss of 78 cents a share. The lost profits add to the problems after the EV truck maker lost a key contract to build a new generation of USPS mail delivery trucks.

Subsidy cuts and increasing competition from auto giants and outdated technology in China are also weighing on shares of Nio and its electric vehicle counterparts. Tesla has lowered the price of its Chinese-made Y model, which is a competitor to the new Nio electric crossover EC6. Meanwhile, a global chip shortage could affect electric vehicle stocks.

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