Shares of NIO (NIO) are sliding after the company delivered a wider-than-expected loss in its first quarter.
Yahoo Finance’s Seana Smith and Brad Smith break down the company’s earnings and how it will fare against increased competition.
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Melanie Riehl
Video Transcript
Let’s talk neo.
That’s another trending ticker here on Yahoo Finance when you take a look at the move lower here, off just about 5% the company reporting a wider than expected loss in the first quarter vehicle deliveries falling about 3% from a year ago.
The big story here is the increase in competition.
You you can see those deliveries falling 3% to just above 30,000, not entirely a massive surprise here from the street.
Remember, Neo did guide to the fact that they were expecting or lowered their forecast for deliveries for the quarter back in March.
They lowered it down to 30,000 from their previous estimate of 31 to 33,000.
But the real story here is increase in competition, right?
What exactly?
That means not only for domestic players in China but also what it ultimately means for larger US automakers trying to compete within that space.
We’ve seen Tesla obviously have a very, very tough time over recent quarters trying to make further inroads, trying to gain market share when you have these, uh, domestic players that are grabbing more of that and even you can see from these results here neo also under a bit of pressure, given that uptick in competition.
The way to describe that pressure if you’re looking at the stock chart is WW as we’re taking a look at the shares year to date down by about 37%.
I’m looking at the second quarter, though here going forward, the company expecting vehicle deliveries to be between 54 to 56,000 units, that actually would represent an increase of approximately 100 29% year over year, Um, 100 29% to 100 and 38% on the top end.
It’s a range.
So ultimately here, also looking at the revenues, they’re expecting that to come in at about 2.3 to $2.37 billion round numbers there.
So all these things considered it is really going to depend upon the movement that we’re seeing in the EV market demand, as you were mentioning as well