Nio reverses losses, jumps 6% after record 1st-quarter deliveries outweigh chip-supply shortages
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Matthew Fox
Apr 30, 2021, 21:34 IST
NIO EP9 electric car is displayed at its store in BeijingREUTERS
Nio reversed its early-morning losses and jumped as much as 6% on Friday after its record first-quarter earnings was overwhelmed by chip supply shortages.
Nio saw its first-quarter revenue grow 481% to $1.2 billion, handily beating analyst estimates.
"The supply chain is still facing significant challenges due to the semiconductor shortage," Nio's CEO said.
Nio initially fell as much as 4% in Friday trades after its first-quarter earnings beat was overshadowed by the potential slowdown in car production due to a lack of semiconductor supply. But those losses were ultimately reversed, with investors brushing aside chip supply concerns and bidding shares of Nio higher by as much as 6%.
"The overall demand for our products continues to be quite strong, but the supply chain is still facing significant challenges due to the semiconductor shortage," Nio CEO William Li said.
First-quarter revenue for Nio hit a record $1.2 billion, handily beating analyst estimates by $160 million and representing year-over-year growth of 481% as demand for electric vehicles in China soars. The company delivered 20,060 vehicles in the quarter, representing a 423% increase year-over-year and a sequential increase of 16%.
The China-based EV manufacturer expects to deliver 21,000-22,000 vehicles in the second quarter, representing year-over-year growth of more than 100%.
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