Shares of Chinese EV major, NIO (NYSE: NIO) gained in morning trading at the time of writing on Friday shrugging off the contractions in the company’s vehicle margin in Q1. NIO’s vehicle margin contracted sharply year-over-year to 5.1% in Q1 versus 18.1% in the same period a year back.
in Q1, the company announced an adjusted diluted net loss in Q1 of $0.36 per ADS while analysts were expecting a loss of $0.39 per ADS.
The company posted Q1 revenues of $1.55 billion, up by 7.7% year-over-year but fell short of consensus estimates of $1.65 billion.
William Bin Li, Founder, Chairman, and CEO of NIO commented, “NIO delivered 31,041 vehicles in the first quarter of 2023, ranking first in the premium battery electric vehicle market priced over RMB400,000 in China for 12 consecutive quarters.”
Looking forward, NIO expects to deliver between 23,000 and 25,000 vehicles in Q2, a decline of around 8.2% to 0.2% year-over-year while total revenues are anticipated to be between $1.27 billion and $1.36 billion, representing a decrease in the range of 15.1% to 9% year-over-year.
Analysts are bullish about NIO stock with a Strong Buy consensus rating based on four unanimous Buys.