Nio Earnings Due As Chinese EV Maker Nears Entry Into Europe


Nio (NIO) will report for a first quarter in which the global chip shortage forced Tesla‘s (TSLA) emerging Chinese rival to shut down EV production at a factory for a few days, while it nears an entry into Europe. Nio stock fell.


On Wednesday, Nio confirmed via Twitter that it eyes a “presence in Norway,” where Tesla has seen huge success. It also announced a press conference May 6 with the hashtag #NIONorway.

Nio Earnings

Estimates: Two analysts on Wall Street forecast that Nio will narrow net losses per share to 16 cents from 25 cents a year ago. Revenue is seen vaulting 423% to $1.02 billion.

Results: Check back later.

In Q1, Nio delivered a record 20,060 electric SUVs, up 423% year over year. It faced easy comparisons after a hit to sales from the coronavirus pandemic in Q1 2020.

Stock: Shares fell 4.2% to 39.47 in Thursday’s stock market trading. Nio stock bounced off the 200-day line earlier in April but has hit resistance at the 50-day line, according to MarketSmith chart analysis.

Tesla stock slumped 2.1%, undercutting its 50-day line. Ford (F), which recently partnered with Nio on EV charging, plunged 7.8%. On Wednesday, Ford crushed Q1 earnings views but warned the chip shortage could cut Q2 production in half and last until 2022.

Among other Chinese EV stocks, Xpeng Motors (XPEV) fell 3.6%, and Li Auto (LI) lost 2.5%.

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Chip Shortage Hits Nio Stock

Starting March 29, Nio briefly suspended production at a factory for five days due to the chip crisis. The supply crunch forced Nio to trim Q1 delivery forecast a bit, but the hot EV startup went on to beat its own cautious view, delivering a record 20,060 vehicles last quarter.

But in early April, CEO William Li warned that Nio may lack the chip stockpiles needed to meet its Q2 production target of 7,500 EVs.

On Monday, Tesla said it switched to “new microcontrollers, while simultaneously developing firmware for new chips made by new suppliers.” Still, CEO Elon Musk acknowledged that the semiconductor shortage is a “huge problem.”

Yet the company is proceeding with its global expansion goals, amid rising competition at home that has hit Nio stock.

Nio’s looming Norway entry comes after rival startup Xpeng Motors began exporting EVs to Europe late last year.

Nio began selling the EC6, a luxury electric coupe SUV, last September and it has been selling briskly. Nio unveiled the ET7 electric sedan in January and expects to start selling the EV in 2022.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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