Nio Inc.’s American depositary shares tanked in the extended session Tuesday after the Shanghai-based electric-car maker reported a wider-than-expected quarterly loss, highlighted a delivery slowdown this year and raised more concerns about China’s economy.
Nio NIO, +3.89% said it lost 3.5 billion renminbi ($511.5 million) in the fourth quarter, or 49 cents a share. Revenue reached 3.4 billion renminbi ($499.7 million) in the quarter, compared with 1.5 billion renminbi in the third quarter. Nio did not provide year-ago numbers.
Analysts polled by FactSet expected a quarterly loss of 32 cents a share on sales of $493 million.
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Fourth-quarter deliveries of Nio’s ES8, an SUV launched last year in the Chinese market, reached 7,980 vehicles, the company said.
See also: Citron’s Andrew Left sells out of China’s Tesla rival Nio
Deliveries of the ES8 in January and February were 1,805 and 811 vehicles, respectively, reflecting “a greater-than-anticipated slowdown in monthly deliveries,” Nio said.
The company pinned the slowdown on accelerated deliveries at the end of 2018 ahead of electric-vehicle-subsidy cuts in China this year, seasonal slowdowns around the Jan. 1 and Lunar New Year holidays, and “the current slowdown of macro-economic conditions in China, particularly in the automotive sector,” it said.
Read more: Nio CEO touts its electric cars as ‘ticket to a new lifestyle’
Nio ADRs fell about 11% in after-hours trading, after ending the regular session up 3.9%.
The ADRs debuted on the New York Stock Exchange in September and a couple of months later the company won a nod from Citron Research’s Andrew Left, who praised its management and marketing strategies, including the creation of “Nio Houses” as places not only for car sales but also as club-style spaces where customers can socialize.
Nio said in December that its ES6, a compact, five-seater SUV, is available to pre-order, with the first deliveries slated for June.
Nio’s ADRs have gained 60% this year, compared with gains around 2.5% for the S&P 500 index SPX, -0.11% .
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