• Nio delivered 83,465 vehicles to customers during the first quarter, nearly double the number delivered in the first quarter of last year.
• For the second quarter, deliveries are expected to range from 110,000 to 115,000 vehicles.
• Revenue for the second quarter is guided between RMB 32.78 billion and RMB 34.44 billion, implying a growth of 72.4% to 81.2%.

U.S.-listed shares of Chinese electric vehicle maker Nio Inc. (NIO) jumped on Thursday after the company provided a better-than-expected forecast on top of a second consecutive quarterly profit, driven by lower expenses and higher average selling prices for its cars.

At the time of writing, NIO stock was up more than 5%, and was the top-trending ticker on Stocktwits.

NIO Q1 Results At A Glance

The company said it delivered 83,465 vehicles to customers during the first quarter (Q1), nearly double last year's number, while vehicle margins rose to nearly 19% from 10%.

The company’s total revenue more than doubled to RMB 25.53 billion ($3.70 billion), driven by higher delivery volume and average selling prices, and is comparable to the consensus estimate of RMB 25.57 billion polled by Fiscal AI.

Adjusted net profit per share was RMB 0.02, better than the consensus estimate of a loss of RMB 0.04 per share.

During the quarter, Nio slashed its research and development expenses by nearly 41% to RMB 1.89 billion and its selling, general, and administrative expenses by more than 20% to RMB 3.50 billion.

Nio’s Strong Q2 Guide

For the second quarter (Q2), deliveries are expected to be between 110,000 and 115,000 vehicles, representing growth of 52.7% to 59.6% from last year. Revenue is guided between RMB 32.78 billion and RMB 34.44 billion, implying a growth of 72.4% to 81.2% from the year-ago period and significantly above the RMB 31.53 billion estimate.

“Starting from the second quarter, the company has entered an intensive new product launch and delivery cycle,” said CEO William Bin Li. “We are encouraged by the continued improvement across all key operating metrics. Looking ahead, we will further enhance cost and operational efficiency while strengthening our sustainable business capabilities.”

Even as China dominates the global EV market, automakers in the country continue to face intense price competition at home amid their strategy to localize manufacturing overseas to avoid stiff tariffs from the U.S., Canada, and Europe.

What Retail Thinks About NIO

On Stocktwits, retail sentiment about NIO turned ‘extremely bullish’ from ‘bullish’ amid ‘high’ message volumes over the last 24 hours.

Following the report, one user on the platform said: “This is how turnaround starts.”

Another user wrote that “direction is clear” for the company.

NIO stock is up more than 9% so far this year and 41% higher over the past 12 months, outperforming the S&P 500.

(RMB 1 = $0.15)

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