In the first quarter, NIO (NIO) reported net revenues of 1.63 billion Chinese yuan or ~$243 million—down 52.5% from revenues of 3.44 million yuan in the fourth quarter. The company’s first-quarter revenues were better than analysts’ estimates of 1.53 billion yuan.
Revenues by segment
NIO generates its revenues mainly from two segments—vehicles sales and other sales. In the first quarter, the company’s vehicle sales revenues were at 1.54 billion yuan or ~$229 million—down 54.6% from 3.38 billion yuan in the fourth quarter. At the same time, the company’s revenues from other sales rose 76.4% to 96.0 million yuan or ~$14 million in the first quarter compared to 54.4 million yuan in the third quarter.
NIO started to deliver its first high volume production model ES8 less than a year ago in June 2018. So, investors should pay attention to the sequential growth in the company’s financials instead of its year-over-year growth figures.
In the first quarter, NIO delivered ~3,989 units of its ES8 vehicle. The figure was 50.0% lower compared to 7,980 car units delivered in the fourth quarter. The figure was ~22.1% higher compared to 3,268 cars delivered in the third quarter of 2018.
Towards the end of 2018, NIO accelerated its car deliveries so that more car buyers could avail the Chinese government’s tax rebates on electric cars before its removal. NIO boosted its car deliveries and revenues in the fourth quarter. As a result, NIO’s car deliveries and revenues fell sharply on a sequential basis in the first quarter.