There was both good news and bad news for investors when Chinese electric vehicle (EV) maker (NYSE: NIO) reported its fourth-quarter and full-year 2023 results in early March. Nio's vehicle deliveries were 25% higher year over year in the quarterly period. And revenue for the full year rose by 13% to a new record.
But competition in the Chinese EV market heightened last year, leading to lower prices as EV makers tried harder to woo buyers. That led to a drop in vehicle margins from almost 14% in 2022 to below 10% in 2023. The bottom-line result was a sharp increase in net losses. That pattern can't continue if Nio is going to survive. But an important new catalyst is on the way.
Source Fool.com