What happened
Shares of Nio (NIO 4.50%), a China-based electric vehicle maker, were tumbling this morning after the company reported its fourth-quarter and full-year 2021 results. While the company beat analysts' consensus revenue estimate, management's guidance for vehicle deliveries for the first quarter fell below expectations.
The electric vehicle stock was down by 9.8% as of 10:38 a.m. ET.
So what
Nio reported sales of $1.6 billion in the fourth quarter, an increase of 49% year over year, which just barely surpassed Wall Street's revenue expectation of $1.5 billion in the quarter. Meanwhile, the company's non-GAAP loss per share of $0.16 in the quarter was on par with analysts' consensus estimate.
Image source: Nio.
Nio delivered 25,034 vehicles in the fourth quarter, up an impressive 44% from the year-ago quarter. And for the full year of 2021, Nio's vehicle deliveries reached 91,429 -- more than double its deliveries in 2020.
Adding to the company's strong results was the fact that Nio's gross margins for the full year were nearly 19%, up from just 11.5% in 2020.
Nio's founder and CEO, William Bin Li, said in a press release that the company had concluded 2021 "on a strong note" despite supply chain volatilities throughout the year and added that "2022 will be a year of reacceleration for NIO."
So with all these solid results, why did Nio stock fall so hard today?
Investors were disappointed that Nio's management said it would deliver between 25,000 to 26,000 vehicles in the first quarter, not the nearly 28,000 analysts were expecting.
NYSE: NIO
Key Data Points
Now what
It seems that investors are overreacting to Nio's results today. The company delivered an impressive amount of vehicles in both the fourth quarter and the full year, despite chip shortages and supply chain constraints.
Additionally, revenue is growing at a healthy clip, losses narrowed for the full year, and gross margins improved.
Short-term investors appear to be panicking, but for long-term Nio investors, these latest results should be proof that the company appears to be on the right track in the burgeoning EV industry.
