Nio Surpasses Delivery Expectations, Shares Surge 14%

Nio (NYSE:NIO) shares surged over 14% on Thursday after the electric vehicle (EV) maker provided a stronger-than-expected delivery forecast for the third quarter.

Nio anticipates Q3 deliveries between 61,000 and 63,000 vehicles, surpassing the Street estimate of 56,770. Projected revenue for the quarter is set to range from 19.11 billion yuan to 19.67 billion yuan, slightly above analysts' expectation of 19.32 billion yuan.

In Q2, Nio reported revenue of 17.45 billion yuan, reflecting a 99% year-over-year increase and beating the 17.38 billion yuan estimate. The company posted a gross margin of 9.7%, a significant improvement from 1% in the prior year and higher than the forecasted 8.74%.

Nio's Q2 deliveries totaled 57,373 vehicles, well above the 23,520 vehicles delivered a year earlier and exceeding the estimate of 55,332. Vehicle sales hit 15.68 billion yuan, more than doubling from 7.19 billion yuan the previous year, while the vehicle margin increased to 12.2%, outpacing both last year’s 6.2% and the projected 11.5%.