Over the past week, shares of Chinese electric vehicle developer and manufacturer NIO Limited (NIO) rose 10.53 percent to end the week trading at $49.25. The explanation for this was the third quarter report, in which the company showed losses below the estimate of the Wall Street.
NIO shipped 12,206 vehicles to customers for the quarter ended September 30, 2020, compared to 4,799 a year earlier and 10,331 in the second quarter of 2020. Sales revenue rose by 146.1 percent to $628.4 million, with gross revenue reaching $666.6 million.
Gross margin rose to nearly 13%, while net loss saw a decline of 58.5 percent which dropped to $154.2 million year on year. The cash and cash equivalent stock amounted to $3.3 billion, which means the company has ample funds to continue to function in the coming quarters.
NIO unveiled a subscription program for battery upgrades in the past quarter and released a fresh 100 kWh battery. An additional 101.7 million shares were issued by the company, while its stake in NIO China was increased to 86.5%.
In the third quarter, with peak monthly deliveries of 5,055 vehicles in October, NIO hit a new milestone for electric vehicle deliveries. A remote software upgrade for electric vehicles was performed by the company, the overall sales cost was increased, and the production cost was reduced.
In the fourth quarter, NIO aims to provide customers with between 16,500 and 17,000 vehicles and continue to expand the idea of “battery as a service”-a specific subscription-based battery replacement service.
NIO plans to provide additional monetization of sold cars sold by providing quicker battery replacement service, where it will take only three minutes to remove and replace the car battery.
On the performance side, stock of NIO Limited (NIO) is showing significant results as the stock price has been skyrocketed by 1,125% since Beginning of the year while it rose to 2,387% over the past year.