On Wednesday, Nio’s shares, listed on the Hong Kong stock exchange, experienced a significant drop of 8.30%. This decline followed a recent announcement of a net loss of 6.06 billion yuan ($831.65 million) in the second quarter.
This loss surpassed the 2.76 billion yuan net loss recorded during the same timeframe the previous year. Despite this setback, the Chinese electric vehicle manufacturer managed to deliver 23,520 vehicles in the second quarter, mainly by offering substantial discounts on its outgoing models. Notably, the introduction of their updated lineup yielded more promising outcomes, evident in the delivery of 20,462 vehicles in July.
Looking ahead, Nio’s third-quarter deliveries could potentially “more than double,” according to John Zeng, who holds the position of Director of China Forecasting at Globaldata, as he shared with CNBC. Zeng elaborated that “Quarterly deliveries are projected to more than double in Q3, a development that is poised to positively impact their overall revenue.”
However, it’s worth noting that the anticipated surge in deliveries might be counterbalanced by forthcoming challenges. Zeng pointed out that price reductions could exert “pressure on their profitability in the coming quarters.”
