(Reuters) – Tesla-rival Nio Inc on Monday beat quarterly revenue estimates on higher demand for its electric vehicles, sending the company’s U.S.-listed shares up more than 13% in trading before the bell.
Revenue jumped nearly 22% to 1.7 billion yuan from a year earlier on sales of 4,196 units of ES6 model in the quarter and 603 units of pricier ES8- a seven-seater sport-utility electric vehicle widely seen as a rival to Tesla Inc’s Model X.
Larger rival Tesla said on Monday it has started delivering Model 3 electric cars from its strategic factory in Shanghai that begun operations less than a year ago, and that it plans to ramp up deliveries in January.
Chief Executive Officer William Li, however, sees little threat. “If you compare the Model 3 with our products, we believe our product is still very competitive,” he said.
The Chinese company faces challenges on a different front though. It said on Monday it did not have adequate cash for “continuous operation in the next 12 months” and that it was looking to obtain external financing.
“The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China. Despite the challenges, NIO’s sales improved solidly since September,” said Li.
The company said that it delivered 4,799 vehicles in the quarter ended Sept. 30 compared with 3,553 deliveries in the second quarter of 2019.
It expects to deliver over 8,000 units in the fourth quarter.
The company also posted a smaller-than-expected loss of 2.38 yuan per share in the third quarter compared with the average analyst estimate of a loss of 2.43 yuan.
Total revenue rose nearly 25% to 1.84 billion yuan ($263.38 million), beating analysts’ estimates of $1.63 billion yuan, according to Refinitiv.
Reporting by Ambhini Aishwarya in Bengaluru; Editing by Shinjini Ganguli