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

NIO Inc. (NYSE: NIO)

 

ABOUT

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

 

ANALYSTS

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

Source: marketbeat.com

 

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.

 

 

Stock chart

 

 

 

Disclaimer
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.
This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.
We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.
When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.
17B Disclosure
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.
Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.