SHANGHAI - NIO Inc. (NYSE: NIO), a leader in China's premium electric vehicle market, reported a larger-than-expected loss for the fourth quarter, with its earnings and revenue falling short of Wall Street estimates. The company's stock dipped 2.44% in premarket trading as investors reacted to the disappointing results and outlook.
For the fourth quarter ended December 31, 2023, NIO posted an adjusted EPS of -RMB2.81, missing analyst expectations of -RMB2.34. Revenue for the quarter reached RMB17.1 billion, also below the consensus estimate of RMB18.16 billion. Compared to the same quarter last year, the company's revenue saw a 6.5% increase, indicating some growth despite the earnings shortfall.
Looking ahead, NIO's guidance for the first quarter of 2024 suggests a cautious stance. The company forecasts vehicle deliveries to be between 31,000 and 33,000 units, which represents a slight decrease to a modest increase from the first quarter of 2023. Total revenues are expected to range from RMB10,499 million to RMB11,087 million, translating to a potential decrease of 1.7% or an increase of up to 3.8% year-over-year (YoY).
William Bin Li, NIO's CEO, highlighted the company's achievements despite the challenging quarter, "In 2023, NIO set a new delivery record of 160,038 vehicles, ranking first in China's premium BEV market with an average transaction price over RMB 300,000." He also emphasized the launch of the ET9, NIO's smart electric executive flagship, and the company's continued investment in technology and user experience.
Steven Wei Feng, NIO's CFO, added, "Our vehicle margin continued to grow, reaching 11.9% in the fourth quarter of 2023." He acknowledged the strategic equity investment closed in December 2023 and stressed the company's focus on optimizing cost management efficiency moving into 2024.
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