June 3 - Shares of Nio (NIO, Financial) slipped 3% Tuesday morning after the Chinese electric vehicle maker posted a deeper-than-expected quarterly loss and missed revenue targets.
The company reported an adjusted net loss of 6.28 billion Chinese yuan ($873.6 million) for the first quarter, widening 28% from the same period a year earlier. Wall Street had expected a narrower loss. Nio has yet to turn a profit since its launch in 2014.
Revenue came in at 12.03 billion yuan ($1.67 billion), up 22% year-over-year but still below analyst forecasts. Vehicle deliveries rose 40% to 42,094 units in the quarter.
Nio's Chief Financial Officer Stanley Yu said the company had begun implementing cost-cutting initiatives, including a restructured organization and improved efficiency across its research, supply chain, and sales divisions.
Yu added that the company aims to improve cost structure and operational performance starting in the second quarter, with an eye on long-term financial health.
The stock's decline adds to recent volatility among U.S.-listed Chinese EV makers, as investors weigh profitability timelines against rising competition and economic headwinds.
Is NIO Stock a Buy Now?
Based on the one year price targets offered by 24 analysts, the average target price for NIO Inc is $5.87 with a high estimate of $12.48 and a low estimate of $3.50. The average target implies a upside of +74.53% from the current price of $3.37.
