NIO (NIO, Financials) shares declined Tuesday after the Chinese electric vehicle maker posted a wider-than-expected net loss and missed revenue estimates for the first quarter.
The company reported an adjusted net loss of 6.28 billion Chinese yuan ($873.6 million), 28% wider than the prior-year period. NIO has yet to report a profitable quarter since its founding in 2014.
Revenue climbed 22% year over year to 12.03 billion yuan ($1.67 billion), though the figure also came in below analyst expectations. NIO delivered 42,094 vehicles in the quarter, marking a 40% increase from the same period a year earlier.
“Since the first quarter, we have implemented a range of cost control measures,” Chief Financial Officer Stanley Yu said, citing organizational restructuring and improvements across the supply chain, research and development, sales, and service operations. He added the company aims to achieve structural cost improvements starting in the second quarter.
Shares of NIO were down nearly 4% in early trading and have declined 23% so far in 2025.
This article first appeared on GuruFocus.