Nio (NYSE: NIO) posted its first-quarter earnings report on June 6. The Chinese electric vehicle (EV) maker's revenue dropped 7% year over year to 9.91 billion yuan ($1.37 billion) and missed analysts' estimates by 520 million yuan. Its adjusted net loss widened from 4.15 billion yuan to 4.9 billion yuan ($679 million) -- or 2.39 yuan ($0.33) per American depositary receipt (ADR) -- and missed the consensus forecast by 0.19 yuan.
Nio's stock price dropped nearly 7% after that disappointing report, and it's now trading more than 20% below its initial public offering (IPO) price. Should contrarian investors still buy this unloved EV stock as the bulls look the other way?
Image source: Nio.
Source Fool.com