Nio (NYSE: NIO) The stock had one of its best days in recent weeks today, up 12% as of 12:40 p.m. ET Thursday.
After losing more than 50% value in the first half of 2024, Nio stock looked set to bounce back in its upcoming earnings report on expectations of higher revenue and better margins. The company didn’t disappoint, giving investors a chance to seize the opportunity electric vehicle (EV) stock Today.
Nio’s Shipments and Margins Finally Recovering
Nio released its second-quarter earnings report Thursday morning. Here are some key numbers you need to know (unless otherwise noted, all changes are year-over-year):
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Vehicle deliveries: up 144% to 57,373 units and up 91% sequentially.
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Revenue: up 99% to $2.4 billion.
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Vehicle margin: 12.2% compared to 6.2% in the same quarter of the previous year and 9.2% in the first quarter.
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Gross margin: 9.7% compared to 1% over the same period of the previous year and 4.9% in Q1.
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Net loss: down 16.7% to $694 million.
The numbers speak for themselves.
One of the main reasons for Nio’s stock’s decline in recent months has been its declining deliveries and margins. However, the decline in production is largely behind the decline as the Chinese electric vehicle maker is in the process of upgrading its models to its next-generation platform. With the upgrades completed in April, I expected Nio’s deliveries, and thus its margins, to rebound.
Nio delivered a record number of electric vehicles in the second quarter and captured more than 40% of China’s market share for battery electric vehicles priced above 300,000 yuan during the quarter.
Should You Buy Nio Stock Now?
Nio plans to deliver a record number of electric vehicles in the third quarter. In the second quarter, the company also launched a consumer brand called Onvo and had already opened 105 Onvo stores as of September 1. Nio plans to officially launch and begin deliveries of Onvo’s first model, the L60 SUV, this month.
While this all sounds positive and could propel Nio stock higher, let me warn you: Q2 was a stellar quarter, so don’t expect Nio’s numbers to be as explosive in the coming quarters. In other words, Nio’s shipments and margins recovered in Q2 and are now expected to stabilize after a long lull, which alone should be enough to keep the stock’s momentum going.
Should You Invest $1,000 in Nio Right Now?
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Neha Chamaria has no position in any of the…
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