NIO's Earnings Report is imminent, and the second-quarter performance is expected to be bleak. Will they deliver 50,000 vehicles in the third quarter?

NIO will announce its second-quarter performance on Tuesday, and investors are not only concerned about profitability, but also have doubts about competition, demand, pricing, and the Chinese economy.

NIO's stock price has fallen by about 45% in the past 12 months and by about 28% in the past month.

In contrast, the S&P 500 index has risen by about 10% in the past 12 months and fallen by about 4% in the past month.

YoY Decline in Data

According to Bloomberg, Wall Street expects NIO's second-quarter revenue to be $1.3 billion, with a loss of about 33 cents per share.

Analysts surveyed by FactSet estimate a slightly higher total loss of 41 cents per share, but the revenue estimate is similar.

In the second quarter of last year, NIO reported an adjusted loss of 19 cents per share and revenue of $1.5 billion.

Due to a decrease in deliveries, revenue has been declining year by year.

NIO delivered approximately 23,500 vehicles in the second quarter, lower than the approximately 25,000 vehicles delivered in the second quarter of 2022.

QoQ Guidance of 50,000 Vehicles?

A significant rebound in deliveries is expected in the third quarter.

Since the launch of the ES6 SUV in May 2023, sales have been growing, and NIO delivered 20,462 vehicles in July.

Among them, the shipment volume of ES6 in July exceeded 10,000 units.

Wall Street expects deliveries of approximately 50,000 vehicles in the third quarter. Based on the data from July, this is feasible.

Data compiled by Citigroup analyst Jeff Chung shows that demand for pure electric vehicles has grown by about 25% YoY in the first seven months of this year. Although sales are strong, sales in August are expected to decline slightly YoY.

The decline in sales may be due to electric vehicle manufacturers, including Tesla, lowering prices for about 25 models in August.