Popular Chinese EV maker Nio (NIO) reported its Q3 earnings for 2022, showing solid top-line (revenue) growth with recent price hikes, yet higher costs led to a wider bottom-line loss than many predicted.
Meanwhile, Nio’s deliveries picked up again as the EV maker accelerates its push into the end of the year.
Nio third-quarter 2022 deliveries
As Electrek reported earlier this month, Nio’s electric vehicle deliveries reached 10,059 in October, climbing 174% YOY, but slipping 7.5% from September.
Altogether EV deliveries reached a record 31,607 in Q3, up 26% from 25,059 in the second quarter. Nio’s deliveries took a step back for the first time in Q2 over lockdowns in China due to COVID-19.
EV deliveries were up 29% compared to last year during the same quarter. Nio’s CEO, William Bin Li, stated:
NIO delivered 31,607 vehicles in the third quarter of 2022, representing a solid growth of 29.3% year-over-year and achieving a record-breaking quarterly delivery. Following the delivery of our new product lineup based on NIO Technology 2.0 catering to different market segments, we have witnessed strong growth momentum in user demand and robust foot traffic, especially after the debut of ET5s in stores from September, and expect the ET5 delivery will support a substantial acceleration of our overall revenue growth in the fourth quarter of 2022.
Like much of the auto industry, Nio has been struggling with supply chain disruptions, but the EV maker is overcoming it with new services and product launches. The CEO added:
To meet the growing user demand and shorten the waiting time, we have been working closely with supply chain partners to accelerate production and delivery.
Nio Q3 2022 earnings and financial results
Nio beat revenue estimates generating over $1.8 billion in Q3 2022, an increase of 32.6% from last year and 26% from Q2 2022.
Revenue from vehicle sales reached $1.677 billion, up 24% from the second quarter, while other sales generated $150.3 million. Meanwhile, Nio’s gross margin (13.3%) improved slightly from Q2 (13%) but is still down from last year’s 20.3% with higher material costs.
Vehicle margin was down to 16.4% from 18% last year and 16.7 % in Q2 2022. Nio says the drop was due to higher battery costs.
Overall, Nio posted a net loss of $577.9 million, a significant increase from last year (+392.1%) and from Q2 2022 (+49%) as the EV maker’s losses widen.
Steven Wei Feng, Nio’s CFO, adds:
We achieved solid top line growth in the third quarter of 2022 against a challenging market environment. We aim to consistently enhance the holistic user experience for our global user community by investing in core technology development as well as power network expansion, while continuously improving our operational execution and efficiency.
Nio ended the third quarter with $7.2 billion in cash.
Guidance
Looking ahead, Nio expects deliveries to continue gaining momentum, projecting between 43,000 and 48,000 EV deliveries in the fourth quarter, representing 71% to 91% growth YOY. Nio says the launch of the ET5 will help accelerate sales into the end of the year.
The EV maker also expects revenue between $2.4 billion and $2.7 billion in Q4, up 75% to 94% from last year. Nio’s stock is down over 74% this year but is bouncing back 10% today on stronger-than-expected earnings results.
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Leading electric vehicle analyst, author, and industry thought leaders Loren McDonald and Bill Ferro stop by Quick Charge to discuss EV Adoption’s acquisition by Paren, the “crisis” of EV charging reliability, and the real state of the EV market.
Depending on who you listen, EVs are either driving brands to record growth and are about cross that critical 10% of the overall market nationwide, or the future is bleak, the market is down, and EVs just aren’t selling. What’s really going on? Loren and Bill (probably) have some answers.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Click here to learn more.
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Chevy EV owners in Texas who have Reliant as their electric utility can now charge for free at night with renewable energy.
Over 150 Chevrolet dealerships across Texas are now offering the Reliant Free Charge Nights plan to new EV buyers. With Free Charge Nights, customers can offset their charging costs by receiving credits for electricity used between 11 pm and 6 am. The plan is powered entirely by renewable energy, thanks to the purchase of renewable energy certificates (RECs).
Rasesh Patel, president of NRG Consumer, says the plan is about making power personal: “We’re excited to help Chevrolet EV drivers offset the cost of charging their vehicle all while having access to a renewable electricity plan.”
This collaboration aims to make EV adoption more appealing by making charging cheaper and greener. GM Energy’s chief revenue officer, Aseem Kapur, emphasized that partnerships like this help build the ecosystem needed to support an all-electric future: “The Reliant Free Charge Nights plan is a great example of how an automaker and an energy company can work together to make EV adoption an easy decision.”
Existing Reliant customers can also sign up for the Free Charge Nights plan. To get started, Chevrolet EV owners need to designate their vehicle on the GM Energy Smart Charging Portal before enrolling in the plan.
Reliant Energy, a subsidiary of NRG Energy, serves over 1.5 million customers in Texas, making it one of the largest electricity providers in the state.
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Texas is about to get a major power boost – a new AI-powered virtual power plant (VPP) delivering capacity equivalent to 200,000 homes during peak demand.
NRG Energy is teaming up with Renew Home to bring nearly 1 gigawatt (GW) of capacity to the Texas grid by 2035, aiming to make it more resilient while helping residents save on energy costs.
The new VPP will rely on hundreds of thousands of smart thermostats and other connected home devices, making use of AI technology provided by Google Cloud. These devices, like Vivint and Nest smart thermostats, will be offered to eligible customers at no cost. By automating HVAC adjustments, they help shift energy use to when electricity is cheaper, cleaner, and less strained.
NRG and Renew Home have big plans for the VPP. Starting in spring 2025, the companies plan to roll out the program across Texas, installing these smart thermostats in homes served by NRG’s retail electricity providers. Eventually, they plan to add home battery storage and EVs to expand the power plant’s capabilities.
Texas has faced record-breaking energy demands, with peak usage hitting 85 GW in 2023. As the state’s population grows and extreme weather becomes more frequent, VPPs like this one could play a key role in stabilizing the grid. VPPs aggregate a lot of small-scale energy resources, from smart thermostats to home batteries, and use them to help balance supply and demand during times of high stress on the grid.
This nearly 1 GW VPP will be one of the largest of its kind in Texas. NRG’s president of consumer operations, Rasesh Patel, calls it a “pivotal step” for improving customer experience while making Texas’ energy infrastructure more sustainable and resilient.
In addition to Renew Home, NRG is working with Google Cloud to maximize the power plant’s effectiveness. Google Cloud’s AI and analytics tools will help predict weather conditions, forecast renewable generation, and optimize energy usage, all of which will help make energy management smoother for both customers and the grid.
Ben Brown, CEO of Renew Home, said:
NRG’s commitment to creating a more resilient and sustainable energy future while also making electricity bills more affordable makes them an ideal partner for co-developing this unique VPP program.
This initiative raises the bar for future-proofing our electricity infrastructure and delivering cost savings to customers.
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