NIO Stock Rose as Investors Focused On 2023 Predictions Following Q4 Delivery Data

NIO Stock


The quarterly earnings report for NIO (NYSE:NIO) is set to be released on Wednesday, March 1st, before the market’s opening.

The average estimate for earnings per share is $0.23 (a decrease of 43.8% year over year), while the consensus estimate for revenue is $2.56 billion (an increase of 65.2% year over year).

The fact that another Chinese electric vehicle (EV) manufacturer, Li Auto, recorded a quarterly profits beat and offered a positive outlook might give investors confidence.

Nio achieved a record monthly delivery of 15,815 automobiles in December 2022, bringing the total number of vehicles supplied for the year to 122,486. This is an increase of 34.0% year over year.

The estimates for 2023 made by the carmaker located in Shanghai will also get a lot of attention from everyone. The price of shares increased at the beginning of 2022. Still, they quickly started to fall due to China’s gradual release from the covid lockdown and the end of government subsidies for electric vehicle manufacturers.

Mizuho’s outlook for Nio in 2023 is described as “cautiously positive.” The company anticipates full deliveries and output as China continues to reopen and manufacturing ramps up after a halt that was previously anticipated. In 2023, there will be five new model launches and ramps, which may act as tailwinds.

A recent report by Reuters said that the automobile manufacturer plans to construct a new facility to develop a new brand of affordable electric vehicles (EVs) that will be sent to Europe.

Recent SA contributor analyses have also been favorable, with Stone Fox Capital indicating that even though Nio began the year with dismal deliveries in January, it should lead to increasing figures by the end of the second quarter of 2023.

According to The Asian Investor, Nio has maintained its pace into January and has delivery potential. However, the company faces short-term hurdles due to “increasing price pressure in the EV business.”

In the last two years, NIO has outperformed analysts’ projections for earnings per share (EPS) 63% of the time and revenue predictions 88% of the time.

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.