Connect with us

Published

on

One of China’s brightest electric vehicle startups, NIO (NIO), reported a wider-than-expected Q1 loss. Although NIO expects EV deliveries to more than double in Q2, its stock continues sliding.

NIO reports Q1 2024 earnings results

NIO delivered 30,053 vehicles in the first three months of 2024. Of them, 17,809 were electric SUVs, while 12,244 were electric sedans.

Although NIO crossed the 30K mark, deliveries fell 3.2% year-over-year (YOY) and 40% from Q4 2023 (50,045). As a result, NIO’s revenue fell 42% from the previous quarter to $1,372 million (RMB 9,908.6 million).

NIO posted a higher Q1 net loss than expected at $718.1 million (RMB 5,184.6 million). That’s up 9% YOY but down 3.4% from the $751.48 million (RMB 5,367.7 million) Q4 2023 net loss.

The EV maker said lower Q1 EV deliveries were expected earlier this year after cutting guidance from 31,000 to 33,000 to 30,000. NIO ended up delivering just over 30K vehicles in Q1.

Despite missing guidance, the report had a few bright spots. For one, NIO’s margins are improving from last year. NIO’s vehicle margins reached 9.2%, up from 5.1% in the same period last year.

NIO-Q2-EV-deliveries
NIO new ES6 (Source: NIO)

Gross margins also improved to 4.9% from 1.5% in Q1 2023. However, both figures were down compared to last quarter.

NIO expects Q2 EV deliveries will more than double

Despite the first quarter miss, NIO expects things to pick up. NIO projects EV deliveries will surge to between 54,000 and 56,000 in Q2, representing 130% to 138% YOY growth.

Following the new 2024 ET7 launched in April (with a massive 150 kWh semi-solid state battery), NIO’s lineup is now completely refreshed. NIO expects the ET7 will rival luxury automakers like BMW, Audi, and Mercedes-Benz.

NIO-new-ET7
2024 NIO ET7 (Source: NIO)

NIO’s lineup now includes the refreshed 2024 ET5, ET5T, EC6, ES6, EC7, ET7, and ES8 as it enters Q2.

NIO also revealed its new Onvo mass-market brand last month. The first vehicle, the Onvo L60 electric SUV, will compete with Tesla’s Model Y, NIO confirmed on its earnings call with investors.

Starting at just $30,500 (219,900 yuan), NIO’s new EV undercuts Tesla’s top seller, which starts at 249,900 yuan ($34,600) in China.

NIO-Q2-EV-deliveries
NIO Onvo L60 launch event (Source: NIO

Several analysts believe the new electric SUV could boost sales to over 20,000 per month. Deutsche Bank analyst Wang Bin’s team sent a letter to investors saying, “We think Nio’s expectation of monthly >20,000 unit delivery is achievable with boost from Onvo.”

Next year, NIO will launch its second vehicle under the Onvo brand, a large electric SUV for bigger families. NIO said on its earnings call that more Onvo EVs are in the pipeline.

NIO-Onvo-Tesla
NIO Onvo L60 electric SUV launch event (Source: NIO)

NIO sees a good opportunity for growth in the segment, with a market size of around four million. Meanwhile, its third “Firefly” brand is coming soon as development progresses.

NIO already announced a record-breaking May, with 20,544 vehicles delivered, up 234% from last year. With 66,217 vehicles handed over so far in 2024 (As of May 31), NIO’s EV deliveries are up 51% YOY.

President and co-founder Qin Lihong confirmed NIO is building its third plant this week as the existing two can no longer keep up with demand.

Lihong told Blue Whale News (via CnEVPost) current production had reached its single-shift capacity, adding, “NIO does not have an overcapacity problem.”

NIO-Q2-EV
NIO stock chart over the past 12 months (Source: TradingView)

Despite the higher expectations, NIO stock is down nearly 8% following its Q1 2024 earnings release. NIO shares are down over 40% in 2024 and over 90% from their ATHs in February 2021.

What do you guys think will NIO pick it up in Q2 with new EVs hitting the market? Let us know in the comments.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Nissan feels the heat from BYD’s EV price war in China

Published

on

By

Nissan feels the heat from BYD's EV price war in China

Nissan is the latest victim of BYD’s “liberation battle” against gas-powered cars. After BYD’s aggressive price cuts this year, Nissan is shutting down a factory in China as it struggles to keep up.

As is the case for many legacy automakers, China is a critical sales market for Nissan. Nearly a third of Nissan’s global sales and net profits are from China.

After slipping out of the top five automakers (by market share) in China in 2022, Nissan’s woes are worsening. Nissan’s sales fell 16% in China last year and the trend has continued into 2024.

Nissan’s sales fell another 2.8% last month, with 64,233 vehicles sold in China. The company cut guidance by 23% last year, with 800,000 vehicle sales expected in fiscal 2024. According to Nikkei, Nissan will do so with one less factory.

Nissan is closing the doors to its plant in Changzhou as the factory is building more cars than it can sell.

The facility accounts for about 8% of Nissan’s production capacity in China, with an annual capacity of around 130,000 units. According to the report, the plant shuts down on Friday.

Nissan-BYD's-EV
Nissan Ariya electric SUV (Source: Nissan)

Under its joint venture with China’s Dongfeng Motor, Nissan has eight plants in the region. Its total annual capacity is around 1.6 million, double Nissan’s projected sales figures for fiscal 2024.

Nissan shuts down China plant amid BYD’s EV price war

The plant shutdown comes as Nissan struggles to keep up in an increasingly competitive China EV market.

China’s largest automaker, BYD, kicked off a “liberation battle” against ICE vehicles earlier this year. The goal is to continue taking market share from gas-powered cars with lower-priced EVs. So far, it seems to be working.

Nissan-BYD's-EVs
BYD (Dolphin Mini) Seagull EV (Source: Nissan)

BYD has drastically cut prices while introducing lower-priced EV models. Its cheapest, the Seagull EV, starts under $10,000 (69,800 yuan).

BYD’s CEO, Wang Chaunfu, said EVs have entered “the knockout round” and that the next two years will be critical for automakers to catch up.

With lower-priced, more advanced models hitting the market, BYD sees joint venture brands (like Nissan’s) market share falling from around 40% to 10% in China.

Nissan isn’t the only legacy automaker feeling the heat. Japanese rivals Toyota, Mitsubishi, and Honda have also pulled back in China amid slumping sales.

Nissan-BYD's-EV
Nissan EV concepts (Source: Nissan)

Meanwhile, BYD looks to expand its global footprint after outgrowing China’s EV market. BYD is closing in on a deal for a plant in Mexico that would be among the biggest in the country. The company expects to sell 50,000 vehicles in Mexico this year.

BYD is also expanding on Nissan and Toyota’s home turf. According to data from the Japan Automobile Importers Association, BYD accounted for over 20% of Japan’s EV imports in January.

With longer-range, lower-priced models rolling out, BYD’s momentum is expected to continue. China’s leading automaker is also expanding into new segments like pickups (check out the new Shark PHEV), mid-size electric SUVs, and luxury.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Tesla Model 3 Long Range costs $3,200 more to finance than last week

Published

on

By

Tesla Model 3 Long Range costs ,200 more to finance than last week

Tesla scrapped promotional financing on the Model 3 Long Range this week after it became eligible for the $7,500 federal tax credit.

As Electrek reported on June 17, Tesla and the IRS confirmed that the Model 3 Long Range All-Wheel Drive is now eligible for the full tax credit. Today, Tesla is pricing the EV’s upfront purchase price at just $34,990 – $1,000 more than the Model 3 Rear Wheel Drive – including the federal tax credit and an estimated five-year gas savings of $5,000.

The Model 3 Rear Wheel Drive still doesn’t qualify for the federal tax credit because it uses LFP battery cells from China.

The Model 3 Long Range is now listed at 6.39% APR on loans up to 72 months. The Model 3 Rear-Wheel Drive continues to offer 1.99% APR for 36 months with a 60-month option at 2.99%.

Even though the Model 3 Long Range is now $7,500 cheaper, the higher interest rate is a bit of a party pooper, as it eats up potential savings. The folks at CarsDirect estimated that on a five-year loan, thanks to the 6.39% interest rate, the Model 3 Long Range has more of a $4,200 advantage than a $7,500 advantage.

If you’re eligible for the federal tax credit, the Model 3 Long Range is cheaper than before but costs around $3,200 more to finance through Tesla than last week. CarsDirect suggests comparing your options carefully if you’re shopping for a Model 3 Long Range. 

Click here to find a local dealer that may have the Model 3 in stock –affiliate link


If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –affiliate link*

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Utah is getting 20 ‘hyper-fast’ Electrify America EV charging stations

Published

on

By

Utah is getting 20 'hyper-fast' Electrify America EV charging stations

Electrify America and electric utility Rocky Mountain Power have rolled out the first of 20 DC fast charging stations in Utah.

Electrify Commercial, a business unit of Electrify America, and Rocky Mountain Power, a division of PacifiCorp, are deploying more than 80 chargers at 15 DC fast charging stations in the Salt Lake City area and five DC fast charging stations in surrounding regions.

So far, four charging stations have come online in Millcreek, Vernal, Moab, and Kimball Junction.

Rocky Mountain Power, the only rate-regulated public utility providing electric service in Utah, will own the new charging stations. Each will have “hyper-fast” chargers capable of speeds up to 350 kW. The utility will set the pricing and Rocky Mountain Power utility customers get a discounted rate.

Since 2016, Rocky Mountain Power has installed more than 120 DC fast chargers in Utah and completed an electric highway corridor along I-15, Utah’s primary and only north-south interstate highway. It’s also facilitated the installation of more than 3,000 Level 2 chargers for workplaces, retail, and multifamily housing. The utility is spending $50 million to install EV charging infrastructure across Utah.

All 20 of Utah’s new DC fast charging stations will be on Electrify America’s coast-to-coast “locate a charger” map, which includes more than 950 stations and over 4,250 chargers in the US and Canada. Drivers will be able to access and pay for charging on Rocky Mountain Power’s chargers through the Electrify America mobile app.

Read more: Here’s what Electrify America’s EV charging plans are for 2024


To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –affiliate link*

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending