(Reuters) – Tesla-competitor-Nio Inc. on Monday beat quarterly revenue estimates on higher demand for the electric vehicle, sending the company’s U.S.-listed shares up more than 13 percent in trading before the bell.
FILE PHOTO: a Chinese electric-car start-up, Nio, Inc. the logo can be seen on the initial public offering (IPO) a day on the new york stock exchange in New York, New York, united states of america, September 12, 2018. REUTERS/Brendan McDermid/File Photo
Revenues jumped by nearly 22% to € 1.7 billion yuan from a year earlier, on sales of 4,196 units in the ES6 model in the area, and 603 units of the more expensive ES8 – a seven-seat sport-utility, the electric car is widely considered to be a rival of Tesla, Inc. Model X.
A larger competitor of Tesla, said on Monday it has begun the delivery of the Model 3 electric car, from its strategic manufacturing facility in Shanghai, which started operations less than a year ago, and it is planning to invest in the supplies in January.
The Chief Executive Officer, William Li, but it doesn’t see much risk. “If you compare it to the Model (3) with our products, we believe that our product is still very competitive,” he said.
The Chinese company is facing challenges on the front though. It said on Monday it does not have enough cash to continue operations in the next 12 months,” and that it was looking for external funding to be obtained.
“The electric-car sector is experiencing considerable softness in the second half of 2019, after the reduction of subsidies in China. In spite of the challenges, the NIO, the sales improved a solid beginning in September,” said Li.
The company said it delivered 4,799 number of items in the quarter that ended in Sep. 30, compared with 3,553 for delivery in the second quarter of 2019.
It is expected to deliver over 8,000 units in the fourth quarter of the year.
The company has also posted a smaller-than-expected loss of 2.38 yuan per share, in the third quarter, compared with the average analyst estimate of a loss of 2.43 yuan.
The total revenue has increased by almost 25% to € 1.84 billion yuan ($263.38 million), beating analysts ‘ estimates of $1.63 billion yuan, according to the Refinitiv.
Reporting Ambhini Festivals in Bengaluru; Editing by Shinjini Ganguli