China’s Nio quarterly revenue misses estimates on COVID-19 hit

Chinese electric vehicle start-up NIO Inc., logo is on display on the trading floor of the New York Stock Exchange (NYSE) as NIO stock begins trading during the company’s initial public offering (IPO) at the NYSE in New York, U.S., September 12, 2018. REUTERS/Brendan McDermid

(Reuters) – Nio Inc on Thursday reported quarterly revenue below Wall Street estimates as the cash-strapped Chinese electric vehicle (EV) maker sold fewer vehicles amid the COVID-19 pandemic, sending its shares down 3%.

Total revenue stood at 1.37 billion yuan ($191.46 million) in the first quarter, compared with the average analyst estimate of 1.67 billion yuan, according to IBES data from Refinitiv.

Auto sales in China tumbled 42% in the first two months of this year from a year earlier, as the outbreak disrupted production and delivery of vehicles.

Nio delivered 3,838 vehicles in the first quarter ended March 31, down from 3,989 vehicles. Sales from vehicles fell 18.2% to 1.26 billion yuan, the company said.

However, the company, which is seen as a rival to Tesla Inc, added that growth in orders since late April has rebounded to pre-COVID levels.

Nio said it expects to deliver 9,500 to 10,000 vehicles in the second quarter.

($1 = 7.1555 Chinese yuan renminbi)

Reporting by Ayanti Bera in Bengaluru; Editing by Anil D’Silva and Shinjini Ganguli

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