Why Shares of NIO Raced Over 70% Higher Monday
Shares of NIO (NYSE: NIO), a Chinese designer and manufacturer of premium electric vehicles (EVs), were soaring more than 60% early Monday afternoon after the struggling automaker released better-than-expected financial results for the third quarter.
Deliveries jumped 35% sequentially, reaching 4,799 during the third quarter. That helped drive vehicle sales to $242.5 million during the quarter, a 22.5% increase from the second quarter and a 21.5% improvement from the prior year's third quarter. Total revenue increased 25% to $257 million versus the prior year, easily topping analysts' estimates of $234 million.
Vehicle margin checked in at a negative 6.8% during the third quarter, which was a large sequential improvement from the negative 24.1% in the second quarter, but slightly worse than the prior year's negative 4.3%. NIO's net loss was $352.8 million during the third quarter, a 23.3% decrease from the second quarter and a 10.3% decrease from the prior year's result.
Source Fool.com
