Tesla Rival NIO Reports a Record 31,607 Electric Vehicles Deliveries in Q3 as Demand Grows

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【Summary】Electric vehicle manufacturer NIO Inc., which is one of Tesla’s biggest rivals in China, reported strong Q3 results on Thursday boosted by growing demand for its technology-packed electric vehicles. NIO delivered 31,607 vehicles in the third quarter of 2022, which represents a 26.1% jump from 25,059 EVs in Q2 and a 29.3% jump from the same period last year.

FutureCar Staff Nov 10, 2022 11:15 AM PT

Tesla Rival NIO Reports a Record 31,607 Electric Vehicles Deliveries in Q3 as Demand Grows

The NIO ET5 electric sedan competes with the Tesla Model 3 in China.

Electric vehicle manufacturer NIO Inc., which is one of Tesla's biggest rivals in China, reported strong Q3 results on Thursday boosted by growing demand for its technology-packed electric vehicles.

NIO delivered 31,607 vehicles in the third quarter of 2022, which represents a 26.1% jump from 25,059 EVs in Q2 and a 29.3% jump from the same period last year. The delivery totals included a mix of 22,859 NIO SUVs and 8,748 electric sedans, which is a YoY increase of 38.2%.

NIO delivered 10,059 of these vehicles in October, representing an increase of 174.3% year-over-year. It indicates that China's auto industry is rebounding from the recent covid-19 lockdowns that disrupted supply chains and stalled production.

The delivery mix for October consisted of 5,979 premium smart electric SUVs including 2,814 ES7s, and 4,080 premium smart electric sedans including 3,050 flagship ET7s and 1,030 ET5s.

NIO's total revenues were RMB 13,002.1 million (US$1.8 billion) in the third quarter of 2022, representing a year-on-year increase of 32.6% from Q3 2021 and an increase of 26.3% from the second quarter of 2022.

NIO reported gross profit of RMB1,735.1 million (US$243.9 million) in Q3 2022, which is a decrease of 12.9% from the third quarter of 2021 and an increase of 29.5% from the second quarter of 2022.

NIO's gross margin also remained stable for Q2 and Q3 2022, but less than Q3 2021. The company reported a gross margin of 13.3% in Q3, compared to 13.0% in the second quarter of 2022.. NIO's gross margins were 20.3% in Q3 last year.

Net loss in Q3 was RMB4,110.8 million (US$577.9 million), representing an increase of 392.1% from the third quarter of 2021 and an increase of 49.1% from the second quarter of 2022.

Excluding share-based compensation expenses, NIO's adjusted net loss (non-GAAP) was RMB3,498.9 million (US$491.9 million) in the third quarter of 2022, representing an increase of 514.2% from the third quarter of 2021 and an increase of 54.3% from the second quarter of 2022.

NIO plans to produce its own electric vehicle batteries as a way to boost profitability and competitiveness in the growing EV segment, as well as lessen its reliance on battery suppliers. The in-house developed high-voltage battery packs will allow NIO to better compete with Tesla in its home market, as well as in Europe, which is NIO's first overseas market outside of China.

NIO plans to start producing the more powerful 800-volt battery packs in the second half of 2024.

NIO also has plans to launch a more affordable EV brand that could attract more budget-conscious consumers. In July, local news outlet Gasgoo reported that NIO aims to better compete against the Tesla Model 3 and Model Y in the China market, citing CEO and chairman William Bin Li. The sub-brand will have an annual capacity of 500,000 electric vehicles a year.

The new brand's models would be priced between 200,000 yuan ($29,840) and 300,000 yuan ($44,750), which is around 10% cheaper than Tesla's Model 3 in China. The vehicles will also have swappable battery packs, according to Li.

Tesla's RWD Model sedan starts at 276,988 yuan ($36,997) in China after factoring in the government subsidy of RMB 11,088 on the purchase of a Model 3 for personal use.

NIO is also expanding outside of its home country of China. After launching in Norway, on Oct 7, the automaker unveiled its products and services for Germany, the Netherlands, Denmark, and Sweden at the "NIO Berlin 2022" event. NIO will offer three models in European countries, the ET7 sedan, EL7 SUV and ET5 sedan. Each is being made available via subscription, leasing programs and direct sales to customers.

NIO launched its new ES7 SUV in June. The automaker is positioning the new electric SUV as a competitor to BMW's X5 sold in China. Pricing for the ES7 is 468,000 to 548,000 yuan ($69,677 - $81,588).

NIO's ET5 sedan was unveiled in Dec 2021. The mid-size ET5 competes with the Tesla Model 3 and other similar electric sedans in China.

As of Sept 30, NIO's cumulative deliveries since 2018 reached 217,897 vehicles, most of which were sold in China. With growing sales, NIO is becoming a bigger rival to Tesla in China, which going forward will make it harder for the Austin, TX based company to compete in the world's biggest auto market.