NIO Q4 2020 Earnings – the Company’s Revenue Has Crossed the Billion-Dollar Mark for the First Time Ever
NIO (NYSE:NIO) has entered 2021 with a somewhat more somber attitude. Relative to its 1,000 percent-plus gains in 2020, the Chinese luxury EV enterprise has seen its shares largely stall, having eked out only a meager 1 percent gain so far in the new year. Against this backdrop, today’s Q4 2020 earnings by NIO have taken on an added significance.
NIO (NYSE: NIO) Fourth Quarter 2020 Financial Scorecard
For the three months that ended on the 31st of December 2020, NIO earned $1.02 billion in revenue, missing consensus expectations by 2 percent but corresponding to an annual growth of over 130 percent. For the FY 2020, the company earned $2.32 billion in revenue.
(All figures are in millions of dollars)
On a more granular level, NIO earned $946.2 million in revenue through vehicle sales. For additional context, the company’s quarterly deliveries for 2020 and Q1 2021 (so far) are detailed below.
(All figures represent EV units delivered)
Readers should note that NIO delivered 7,225 EVs in January 2021. As far as February numbers are concerned, the company cumulatively delivered 5,578 EVs, including 1,327 ES8s, 2,216 ES6s, and 2,035 EC6s.
As far as NIO’s production plans are concerned, the company is ramping up the capacity of its existing plant – built in collaboration with JAC – to 300K units by the end of 2021. Additionally, the company has recently begun the construction of an industrial park in Heifei that will integrate R&D, manufacturing, pilot demonstration and applications, and industrial support services.
In Q4 2020, NIO recorded $133.5 million in adjusted loss from operations and possessed cash and cash equivalents of $6.5 billion.
(All figures are in millions of dollars)
Finally, NIO earned -$0.14 in non-GAAP EPS, missing consensus expectations by $0.08.
(All figures are in dollars)
NIO detailed the following operational highlights for Q4 2020:
- In December 2020, NIO completed the offering of 78,200,000 American depositary shares, each representing one Class A ordinary share of the Company, at a price of US$39.00 per ADS
- In January 2021, NIO completed the offering of US$750 million of convertible senior notes due 2026 (the “2026 Notes”) and US$750 million of convertible senior notes due 2027
- In addition, NIO entered into separate and individually privately negotiated agreements with certain holders of its outstanding 4.50% convertible senior notes due 2024 (the “2024 Notes”) to exchange approximately US$581.7 million principal amount of the outstanding 2024 Notes for its American Depositary Shares
- In February 2021, NIO completed the increase of its controlling equity interests in NIO China through the purchase of certain investors’ equity interests and the subscription for newly increased registered capital. The Company currently holds an aggregate of 90.360% controlling equity interests in NIO China.
As far as Q1 2021 is concerned, NIO expects to deliver between 20,000 and 20,500 EVs. Moreover, the company expects to earn a revenue of between $1.13 billion and $1.16 billion in the first quarter of the year.
Investors have reacted negatively to NIO’s Q4 2020 earnings release, with the stock posting a loss of over 3 percent in the after-hours trading as the company missed consensus expectations on revenue and EPS.
As part of its NIO Day 2020 event, the company had removed the wraps from its ET7 sedan on the 09th of January 2021. With a range of over 1,000 km when equipped with a 150-kWh battery pack, the ET7 is expected to debut in Q1 2022. At the event, NIO also unveiled a new 150-kWh semi-solid-state battery that will launch in Q4 2022 and offer an energy density of 360 Wh/kg. Additionally, NIO also revealed its Autonomous Driving feature, dubbed Aquila Sensing. Aquila consists of 33 sensors, including 11 8MP high-res cameras, a lidar unit with a 1550nm laser and 120-degree field of view, a 5mmWave radar, 12 ultrasonic sensors, and 2 high-precision positioning units. The sensor data is processed by an on-board computer, ADAM. The system is built upon 4x NVIDIA Drive Orin SoC and boasts a total computing power of 1,016 Tera Operations Per Second (TOPS). Finally, NIO also unveiled its Battery Swap 2.0 stations that can perform 312 automated swaps per day, with each battery swap taking place in under 3 minutes. The company has achieved this by eliminating the lift step required by the first-generation stations. These stations will begin to be deployed by April 2021. NIO plans to build 500 battery swap stations in China by the end of 2021.
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