Shares of Nio Inc.
soared 12.4% in premarket trading Monday, after the China-based electric car maker reported third-quarter results that beat expectations, as vehicle deliveries grew 35% from a year ago. The net loss for the quarter to Sept. 30 narrowed to RMB2.52 billion ($352.8 million), or RMB2.48 a share, from RMB2.81 billion, or RMB42.59 a share, in the year-ago period. Excluding non-recurring items, the adjusted loss per American depositary share was RMB2.38, compared with the FactSet consensus for a loss of RMB2.53 a share. Revenue grew 25% to RMB1.84 billion ($257 million), above the FactSet consensus of RMB1.70 billion. Vehicle deliveries increased 35.1% to 4,799 ES8 and ES6 vehicles. “The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China,” said Chief Executive William Bin Li. “Despite the challenges, NIO’s sales improved solidly since September.” Nio’s stock has run up 55% over the past three months through Friday, but has tumbled 62% year to date. In comparison, U.S.-based rival Tesla Inc.’s stock
has rallied 29% year to date and the S&P 500
has gained 29%.