NIO Q1 2023 Earnings Highlights

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● Q1 total revenues were US$1,554.6 million, representing an increase of 7.7% YoY (year-on-year) and a decrease of 33.5% from the fourth quarter of 2022. The decrease in vehicle sales was mainly due to a lower average selling price as a result of the higher proportion of ET5, partially offset by the delivery volume increase.

● Vehicle deliveries were 31,041 in Q1 2023, consisting of 10,430 electric SUVs and 20,611 electric sedans, representing an increase of 20.5% YoY and a decrease of 22.5% QoQ (quarter-on-quarter).

● Vehicle margin was 5.1% in Q1 2023, compared with 18.1% YoY and 6.8% in the fourth quarter of 2022.

● Net loss was US$690.1 million this quarter, representing an increase of 165.9% YoY but a decrease of 18.1% QoQ. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was US$604.3 million in the first quarter of 2023.

● For the Q2 FY23 Outlook, deliveries of vehicles are between 23,000 and 25,000, representing a decrease of 8.2% to 0.2% YoY approximately.

● For the Q2 FY23 Outlook, total revenues are between US$1,273 million and US$1,364 million, representing a decrease of 15.1% to 9.0% YoY approximately.

● "Facing the challenging market environment, we will promptly analyze the dynamics of the operating environment and competitive landscape. Meanwhile, we will stay focused on execution, optimize cost structure, and further improve our operating efficiency," said Steven Wei Feng, the CFO of NIO.

● NIO is still ranked first in the premium electric vehicle market priced over RMB400,000 in China for 12 consecutive quarters.

● In late May 2023, NIO launched its All-New ES6, a smart electric all-around SUV in China. Besides, NIO plans to launch a new vehicle model based on NT2.0, ET5 Touring, a mid-size smart electric tourer, in June 2023. With the volume ramp-up of new models, there might be beneficial changes in the future.

● The company experienced an unexpected slowdown in EV delivery in May, with a 12.6% decrease YoY. Whereas NIO outperformed rival XPeng, which saw a 25.9% delivery decline YoY.

● NIO's contracted margins and declining capital position may raise concerns about the need for additional debt or equity to fund future growth.

By June 12, 2023, NIO shares had fallen more than 13% since the beginning of 2023, falling behind the S&P 500 (.SPX), which was up about 13% during the same period (Source: moomoo APP).

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