Chinese EV maker Nio posts widening net loss of 170%

Nio cars at NYSE IPO / Photo credit: Nio

Stock of Chinese electric-vehicle maker Nio dropped 6% yesterday on the New York Stock Exchange (NYSE) after reporting net losses of US$838.9 million in Q4 2022, widening by almost 170% compared to the same year-ago quarter.

Nio also logged 40,052 vehicle deliveries in the quarter. While this is higher than the updated guidance it announced at the end of 2022, the company didn’t hit its original target of 43,000 to 48,000 vehicles.

For the first quarter of 2023, it expects to roll out between 31,000 and 33,000 vehicles. The company has delivered 8,506 vehicles in January and 12,157 vehicles in February 2023 so far.

Meanwhile, total revenue for Q4 2022 stood at US$2.33 billion, up 62.2% year on year, while gross shrank 63.4% to US$90.1 million compared to the same period in 2021.

Nio’s stock has been on a downward trend since the latter half of 2022. In July, short-seller Grizzly Research put out a report that alleged Nio was falsely pumping revenue and profitability numbers through Weineng, its battery asset management provider.

The report, which claims Nio inflated revenue and net income numbers by 10% and 95%, respectively, had sent the EV maker’s stock down almost 9% on the NYSE.

Nio launched an independent investigation after announcing that the report “contains numerous errors, unsupported speculations, and misleading conclusions and interpretations.”

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