NIO Inc., the Chinese Tesla, Ships 3,000 Electric Vehicles, Analysts Review and Target




NIO Inc. designs, manufactures, and sells electric vehicles in the People’s Republic of China, the United States, Germany, and the United Kingdom. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People’s Republic of China.


Key Statistics ($000)

Market Capitalization,    7,654,035

Shares Outstanding, K    1,026,010,

Price/Earnings ttm          0.00

Earnings Per Share ttm  -1.51

Most Recent Earnings    N/A on N/A

36-Month Beta  N/A

Annual Sales, $M            0

Annual Net Income, $M -4,985

Annual Dividend & Yield              0.00 (0.00%)

Most Recent Dividend   N/A on N/A



7 Wall Street analysts have issued ratings and price targets for NIO in the last 12 months. Their average twelve-month price target is $8.4667, suggesting that the stock has a possible upside of 14.49%. The high price target for NIO is $12.60 and the low-price target for NIO is $4.20. There are currently 1 sell rating, 2 hold ratings and 4 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Date                    Brokerage                         Action                                Rating                 Price Target

10/22/2018        Credit Suisse Group        Initiated Coverage          Outperform              $12.60

10/9/2018          JPMorgan Chase & Co.   Initiated Coverage         Neutral

10/8/2018          Wolfe Research               Initiated Coverage          Outperform              $8.00

10/8/2018          Morgan Stanley               Initiated Coverage          Buy                      $9.00

10/8/2018          Goldman Sachs Group   Initiated Coverage          Neutral               $7.00

10/8/2018          Deutsche Bank                Initiated Coverage          Buy                      $10.00

9/13/2018          Sanford C. Bernstein      Initiated Coverage          Underperform              $4.20



NIO hit two key milestones in the third quarter:

It completed the first full quarter of production of its upscale electric SUV, called the ES8, and delivered more than 3,000 to customers.

NIO successfully completed its initial public offering in the United States on Sept. 12.

NIO’s first production vehicle, an upscale electric SUV called the ES8, went into production in June at a factory owned by Chinese automaker JAC Motors, near Shanghai. NIO was able to produce 500 ES8s and deliver 100 in the last few days of June. Not surprisingly, it improved on those numbers considerably in the third quarter, producing 4,206 ES8s and delivering 3,268 to customers.


Financial review

Financial Highlights for the Third Quarter of 2018

Total revenues were RMB1,469.6 million (US$214.0 million) in the third quarter of 2018, representing an increase of 3,095.3% from the second quarter of 2018.

Gross margin was negative 7.9%, compared with negative 333.1% in the second quarter of 2018.

Loss from operations was RMB2,809.9 million (US$409.1 million) in the third quarter of 2018, representing an increase of 49.9% from the second quarter of 2018. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) (2) was RMB2,377.7 million (US$346.2 million) in the third quarter of 2018, representing an increase of 31.3% from the second quarter of 2018.

Net loss was RMB2,810.4 million (US$409.2 million) in the third quarter, representing an increase of 56.6% from the second quarter of 2018. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB2,378.2 million (US$346.3 million) in the third quarter, representing an increase of 37.4% from the second quarter of 2018.

Net loss attributable to NIO’s ordinary shareholders for the third quarter of 2018 was RMB9,756.8 million (US$1,420.6 million), representing an increase of 59.7% from the second quarter of 2018. Accretion on convertible redeemable preferred shares to redemption value contributed RMB6,923.0 million (US$1,008.0 million) to net loss attributable to NIO’s ordinary shareholders for the third quarter of 2018, which was a non-cash event and will no longer recur after the initial public offering of the Company on September 12, 2018. Excluding share-based compensation expenses, accretion on convertible redeemable preferred shares to redemption value and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB2,370.2 million (US$345.1 million).

Basic and diluted net loss per ADS (3) in the third quarter were both RMB42.59 (US$6.20).  Excluding share-based compensation expenses, accretion on convertible redeemable preferred shares to redemption value and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per ADS (non-GAAP) were both RMB10.35 (US$1.51).

Cash and cash equivalents, restricted cash and short-term investment were RMB9,153.4 million (US$1,332.8 million) as of September 30, 2018.


Stock influences and risk factors

Their ability to develop and manufacture a car of sufficient quality and appeal to customers on schedule and on a large scale is unproven and still evolving.

The unavailability, reduction or elimination of government and economic incentives or government policies which are favorable for electric vehicles and domestically produced vehicles could have a material adverse effect on the business, financial condition, operating results and prospects.

Their services may not be generally accepted by users. If they are unable to provide good customer service, their business and reputation may be materially and adversely affected.



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