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China's Nio beats second-quarter sales estimates, shares rise

Aug 11 (Reuters) – China’s electric vehicle maker Nio Inc beat Wall Street estimates for quarterly revenue on Tuesday and forecast current-quarter sales above expectations, after a rise in vehicle deliveries despite disruptions caused by the coronavirus crisis.

U.S.-listed shares of the company, that have surged nearly four-fold this year, were up about 12% at $15.87 in premarket trading.

“The current constraints on the productions will be lifted in the near future and we are confident that our production capacity can meet the accelerated demand of our models,” Chief Executive Officer William Bin Li said in a statement.

The pandemic-hit auto industry in China is recovering, with sales in July climbing 16.4%, marking the fourth month of gains as demand in the world’s biggest vehicle market picks up.

Nio said it delivered a total of 3,533 of its ES8 and ES6 sport-utility electric vehicles in July, a jump of about 322% year-over-year.

The company forecast revenue between 4.05 billion yuan and 4.21 billion yuan ($606.68 million) for the third quarter. Analysts were expecting revenue of 3.53 billion yuan, according to IBES data from Refinitiv.

Nio also expects vehicle deliveries to be between 11,000 and 11,500 units.

Revenue more than doubled and stood at 3.72 billion yuan, in the second quarter ended June 30, beating estimates of 3.51 billion yuan.

Excluding items, Nio posted a loss of 1.08 yuan per American depository share. Analysts had expected a loss of 1.84 yuan per ADS. ($1 = 6.9394 Chinese yuan renminbi) (Reporting by Akanksha Rana in Bengaluru; Editing by Shailesh Kuber)

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