Nio Inc. U.S. storage earnings went deeper into a bear market on Tuesday, but Wall Street focused on the Chinese carmaker’s “impressive” hopes for its first-quarter sales.
Nio NIO,
late Monday reported a 133% increase in fourth-quarter revenue and a higher-than-expected loss. ADRs traded at $ 44.82 on Tuesday and recently fell about 26% from the February 9.8 closing record of $ 62.84, placing them well in the stock market.
Nio shares are 5% in the red this year, but have gained 1,045% in the last 12 months, compared to advances of about 3.6% and 26% for the S&P 500 SPX,
until this year and in the last 12 months. Nio hit a 52-week low of $ 2.37 on March 23, 2020.
Edison Yu and Deutsche Bank highlighted Nio’s “impressive” guidance in the first quarter, which called for the delivery of about 20,000 to 20,500 vehicles, an increase of 15% to 18% over fourth-quarter deliveries. It targeted revenue of $ 1.13 billion to $ 1.16 billion for the quarter.
Delivery expectations show “a very real path to (more than 100,000) deliveries this year,” he said.
“We believe this reflects the growing awareness and appreciation of the brand and its aspirational ecosystem, putting NIO on the right track to becoming a market leader in the premium segment in China,” Yu said.
The goal of delivering 100,000 is “achievable,” he added.
Wedbush’s Dan Ives said Nio’s “robust” results in the fourth quarter “speak of an opportunity to transform EV into China.” The EV manufacturer has “massive tail winds in 2021, as the golden age of EVs catches up with Tesla, Nio, Xpeng XPEV,
Li Auto LI,
and others are leading this opportunity in the Chinese market. ”
Ives said the delivery guide in the first quarter was a positive preview for general demand this year. Headwinds include the continuing impact of the chip shortage on global car markets and recent Tesla Inc. price reductions.
“The Chinese electric vehicle market will go from 4.5% to 10% in the next 2 years, based on our forecasts, as consumer appetite for electric vehicles from all over the world is declining and will benefit both local sellers and and well-positioned foreign players. (Tesla TSLA,
Ford F,
GM GM,
etc.) ”, said Ives.