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China EV maker Nio reports wider-than-expected loss in Q2

Yahoo Finance Live anchors discuss second-quarter earnings for Chinese EV maker NIO.

Video Transcript

JARED BLIKRE: Yeah, so we also want to keep track of another perennial favorite of the Yahoo Finance viewers and watchers. That would be NIO. And you can see that stock is down about 3%, or at least, those ADRs. And that's after the Chinese EV maker reported earnings. And despite beating out earnings expectations, they did post some wider than expected losses, failing to reach estimates on the bottom line. Now deliveries of vehicles were up 14% this year over a year, but down almost 3% from the first quarter.

So this is a China demand story. Admittedly, there's only so much you can unpack. They still-- the country is facing a wave, another wave, of closures. But it's all about the deliveries, and they fell a little bit short. I do have a breakdown of the models here. So the ES8, which is a higher end model, they actually beat on those deliveries 36 to 81. And you can see ES6, 9,914 versus the estimate of 10,223. So a bit short by about 300 there. EC6 deliveries short by about 640. 715 was that number.

JULIE HYMAN: Yeah, and because of all the shutdowns that have been happening, NIO is now looking at a big back half of the year because it has to, right? So that's something that the CEO, William Li, said in the statement, the second half is a critical period and that they want to embrace robust growth in the coming quarter. So the forecast for deliveries in the current quarter is 31,000 to 33,000 total. And it's still below what analysts had been predicting, which was more than 37,000.

But it's also-- they only delivered, like, 10,000 vehicles in the earlier part of the year if you were looking at the months July and August, actually, because of the shutdowns. The shutdowns hitting them on both ends because it's affecting them both production wise and also demand wise. And so now, in the second half of the year-- or not even the half-- the last quarter of the year--

JARED BLIKRE: Whatever you call it.

JULIE HYMAN: The last quarter of the year, they're hoping to see some increases there. So they've had that to contend with. There's more competition in China that they've had to contend with as well. So all of that weighing on the company.

JARED BLIKRE: Plus, it's a Chinese stock, and we all know what that has been doing [INAUDIBLE].

JULIE HYMAN: Yes, exactly, that you have sort of governmental concerns. Even if that industry is not directly affected, you still get concerns about--


JULIE HYMAN: --regulation overall. Yes, indeed.