Neo falls despite striking views; Tesla China sales began to recover in May

China-based electric car maker New (NIO) reported better-than-expected first-quarter earnings early Thursday and hit a big jump in June delivery as Covid shutdown issues ended. at the same time, Tesla (TSLA) China sales figures showed a significant improvement compared to . April, with indications that production and deliveries will fully return in June. Nio stock fell early Thursday while Tesla stock rose.


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Estimates: Wall Street expected Nio to post a loss of 14 cents a share in the first quarter. According to FactSet, sales were seen coming in at $1,512 billion, a 23% increase over the same period last year.

consequences: Nio posted a first-quarter loss of 13 cents per share vs. Losing 4 cents a year ago. Revenue increased 24% to $1.56 billion. Nio already reported 25,768 vehicle deliveries in the first quarter, an increase of 28% year over year and a 3% increase over the fourth quarter of last year.

prospects: Nio expects 23,000 to 25,000 deliveries in the second quarter, up 5%-14% vs. A year ago, but slightly down from the first quarter. Nio already reported EV deliveries of 5,074 in April and 7,024 in May, so expectations are for a June delivery of approximately 10,900-12,900, as Nio production bounces back toward pre-close levels.

A recent local report said Nio’s operations are now back to pre-lockdown levels. The company is also opening Nio stores in Shanghai, its largest market.

With the opening of Shanghai last week, Deutsche Bank analyst Edison Yu says Nio can finally get back on track with its superior product cycle this year. “In fact, Nio 101 vehicles have already been delivered in the city since (June 2), even before ET7 deliveries began,” he wrote in a June 6 note.

Nio also forecasts Q2 revenue of 9.34 billion yuan ($1.47 billion) and 10.088 billion yuan ($1.59 billion). That would be a 10.6% -19.4% annual gain in local currency.

Tesla sales in China

Tesla sold 32,165 cars made in China last month, which is significantly less than usual, but up from 1,512 in April alone. These numbers are part of the industry-wide data from the China Passenger Car Association. Shanghai Tesla produced 33,544 cars vs. Typical production of 60,000 or more vehicles. However, this is up from 10,757 in April, when the Shanghai plant was closed for most of the month as part of citywide Covid lockdowns.

Starting on April 19, Tesla has created a closed environment in which workers live in the factory to resume some production, with production ramping up in late May.

Local government media reported that so far, Tesla has returned to daily production at 100%, and workers are still on site. Shanghai largely ended its lockdowns on June 1, with Beijing easing restrictions recently.

These are two huge markets for Tesla within China. Meanwhile, Shanghai and several local governments are introducing new subsidies to boost electric vehicle sales for the rest of 2022.

Of the cars sold in May, 22,340 were exported and 9,825 were sold domestically. Shanghai, Tesla’s biggest market in China, ended the Covid lockdown only on June 1.

On Wednesday, a local report said a BYD (BYDDF) CEO confirms it will provide batteries to Tesla.

The market rise lacks the main features, the indicators are falling; 5 stocks near the points of purchase

New Stock, Tesla Stock

Nio shares are down nearly 6% before the stock market opens today. New shares rose 3.6 percent to 20.35 on Wednesday, its ninth gain in 10 sessions. The stock has regained its 50-day streak in recent days, gaining nearly 50% in the past month, according to MarketSmith.

NIO stock is still far from 52-week high at 55.13, but its relative strength line is rising again.

Tesla stock added 3.5% in pre-market trading. Shares rose 1.3 percent to 725.60 on Thursday. TSLA stock is in a long consolidation with a buy point of 1,208.10. Stocks are trading below the 50-day declining line.

Among other electric vehicle manufacturers in China, Exping (XPEV) is down 4% early Thursday while Lee Otto (LI) sank 3%. Both rose on Wednesday and have been trending sharply higher in the past few weeks.

BYD stock was not traded Thursday. The shares rose 2.4% to 38.80, working towards 41.34 buying points from a deep cup base. Its RS line reached a new high on Wednesday.

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