Chinese EV maker Nio vows to expand to more countries this year

Chinese electric-vehicle maker Nio Inc. late Thursday reported quarterly sales slightly above Wall Street expectations, vowing to make 2022 a year of “reacceleration” for its business and to sell its EVs in more countries.

Nio NIO, +0.50% said it lost RMB2.14 billion ($336.4 million) in the fourth quarter, compared with a loss of RMB1.38 billion a year ago. Nio’s adjusted loss hit 16 cents per American depositary receipts.

Revenue rose 49% to RMB9.9 billion, or $1.55 billion, the EV maker said.

FactSet consensus called for a loss of 14 cents per ADR on sales of $1.53 billion.

Nio’s American depositary receipts rose more than 2% in the extended session after ending the regular trading day up 0.5%.

Nio ended 2021 “on a strong note” despite supply-chain problems and having to invest in its products and technologies as well as infrastructure, founder and Chief Executive William Bin Li said in a statement.

“2022 will be a year of reacceleration for Nio,” he said. The company, which started selling its EVs in Norway in September, will enter more countries and regions to further expand its customer base, he said.

Nio guided for first-quarter deliveries of between 25,000 vehicles and 26,000 vehicles, which would be an increase of between 25% and 30% from the same quarter of 2021.

It called for first-quarter sales between RMB9.631 million, or $1.51 billion, and RMB9.987 million.

Nio said it delivered 25,034 EVs in the fourth quarter, including 12,180 of its ES6 mid-size SUV, representing an increase of 44% from year-on-year deliveries and a 2.4% increase from the third quarter. Full-year deliveries rose 109% to 91,429 vehicles, the company said.

Nio ADRs have been battered on several fronts lately, including by fears of increased U.S. scrutiny on shares of overseas companies and supply constraints, and rising interest rates dinging the appeal of auto-maker stocks.

Nio’s ADRs have lost about 41% in the past 12 months, contrasting with gains of about 16% for the S&P 500 index SPX, +1.43%.

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