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Vladimir Zernov
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NIO Video 02.03.21.

NIO Missed Analyst Estimates

Shares of NIO found themselves under significant pressure after the company released its fourth-quarter report.

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NIO reported revenue of $1 billion and GAAP loss of $0.16 per share, missing analyst estimates on both earnings and revenue. The company stated that it delivered 17,353 vehicles in the fourth quarter. For the full year, deliveries of vehicles were 43,728 compared to 20,565 vehicles in 2019.

NIO added that it had already delivered 12,803 vehicles in the first two months of this year and expected that first-quarter deliveries would be between 20,000 and 20,500 vehicles. The company also expects that its revenue will grow to $1.1 billion in the first quarter.

Traders did not like the report and sold NIO shares which are down by about 8% in today’s trading session. The company missed analyst estimates while its delivery guidance was not aggressive enough for the market.

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What’s Next For NIO?

It should be noted that NIO shares gained more than 1000% in just one year so the market expected strong results from the company. Currently, investors are willing to bet on almost any company that is focused on electric vehicles. As a result, such stocks followed Tesla‘s lead and gained strong upside momentum in 2020.

This year, investors will likely pay more attention to financial results, but it remains to be seen whether disappointing earnings reports will be able to put any long-term pressure on shares of electric vehicle companies like NIO.

Such companies often miss expectations on profits or deliveries, but the market is often ready to turn a blind eye to temporary problems. While NIO’s earnings report was not as strong as analysts expected, the company continues to grow at a healthy pace. In this light, its stock may soon find enough support from speculative traders and investors who are ready to establish positions in EV-related stocks after a pullback.

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