Electric vehicle manufacturer Nio (NYSE:NIO) anticipates a substantial increase in deliveries for the second quarter, projecting figures to surpass double that of the previous year, totaling between 54,000 and 56,000 units.
Revenue is also expected to experience a near doubling, reaching approximately $2.3 billion during the three months commencing in April.
Despite its nine-year tenure, the company is yet to achieve profitability, reporting a net loss of $718 million for the first quarter, a slight improvement from the $772 million loss recorded in the fourth quarter of 2023.
Ranked eighth in electric vehicle sales within China, Nio witnessed a resurgence in deliveries of its Nio-branded electric vehicles priced from $4,000, with sales exceeding 20,000 units in May. This uptick followed adjustments in its battery rental scheme, aimed at stimulating sales.
In response to intense pricing competition within China, akin to its competitors, Nio is diversifying its consumer base and augmenting sales by introducing more affordable models. Concurrently, the company has implemented measures such as workforce reductions and the deferral of long-term projects that do not promise financial returns within three years.
Recent reports indicate Nio’s authorization to construct a third manufacturing facility in China, poised to elevate its sanctioned production capacity to 1 million vehicles. This output projection places Nio’s capacity nearly on par with that of Tesla’s expansive Shanghai plant.
Situated in Huainan city within the eastern province of Anhui, the newly sanctioned F3 plant will primarily cater to vehicles under Nio’s recently launched economical car brand, Onvo.
In May, Nio unveiled its Onvo L60 SUV, featuring a starting price of 219,900 yuan ($30,300), positioning it competitively against Tesla’s Model Y, which starts at 249,900 yuan in China.
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