Nio Stock Drops as Chinese EV Maker’s Quarterly Results Fall Short of Estimates | Global News Avenue

Neo’s (NIO) U.S. listed stocks The company fell in premarket trading after the Chinese electric car maker reported lower-than-expected quarterly results, including a larger-than-expected loss.

Revenue in the third quarter was 18.67 billion yuan ($2.57 billion) as the Chinese company lowered the average selling price of its vehicles amid a fierce domestic price war with rivals. That was lower than the 19.14 billion yuan consensus forecast by analysts polled by Visible Alpha.

Its net loss during the period was 5.14 billion yuan, which expanded from 4.63 billion yuan in the same period last year and exceeded analysts’ expectations of a loss of 4.75 billion yuan.

NIO predicts fourth-quarter deliveries will set new record

Car deliveries in the third quarter increased nearly 12% year-on-year to 61,855 vehicles. However, car sales fell 4.1% due to “lower average selling prices.”

founder and Chief Executive Officer (CEO) Li Bin said that NIO has more than 40% market share in China’s pure electric vehicles (BEV) priced at more than 300,000 yuan ($41,397), and it expects total deliveries this quarter “to set a new record.”

NIO said it expects delivery volume this quarter to be between 72,000 and 75,000 vehicles, with total revenue between 19.68 billion yuan and 20.38 billion yuan.

NIO shares fell 1.5%, and have fallen nearly 50% this year as of Tuesday.