Nio Inc., a Chinese electric vehicle manufacturer, reported lower-than-expected revenue and a higher loss for the third quarter of this year.

The company recorded revenue of 18.7 billion yuan (around US$2.58 billion) after delivering 61,855 cars. This fell short of analyst expectations of 19.2 billion yuan (around US$2.6 billion). Nio’s net loss was 4.4 billion yuan (around US$607 million), exceeding the projected 4.3 billion yuan (around US$593 million).

Vehicle sales experienced a slight decline due to changes in product mix impacting average selling prices. This occurred despite a rise in delivery volumes.

However, Nio’s gross margin increased to 10.7%, up from 8% in the previous year.

Nio aims to deliver between 72,000 and 75,000 vehicles in the current quarter. It also forecasts revenue between 19.7 billion yuan (around US$2.7 billion) and 20.4 billion yuan (around US$2.8 billion).

Recently, Nio has faced competitive pressures from a price war initiated by Tesla in China’s EV market. Initially hesitant, Nio eventually reduced vehicle prices by up to 30,000 yuan (around US$4,100) last year to sustain its market presence.

Recent Nio developments