NIO shares rose more than 14% on Thursday after the Chinese electric vehicle maker reported record revenue of RMB 17.5 billion ($2.4 billion) in the second quarter that ended June 30, beating estimates, according to a Bloomberg survey. Its quarterly adjusted net loss shrunk 16.7% to RMB 4.54 billion from a year earlier, and the margin per vehicle sale improved to 12.2% from 6.2% a year earlier and 9.2% a quarter ago, better than analysts’ expectation thanks to cost reduction efforts. NIO’s management expects vehicle margin to grow over the rest of the year as as much as 15% in the fourth quarter, as the company aims for a higher monthly delivery target of between 30,000 and 40,000 units of its namesake luxury brand.
Meanwhile, the first model under its mass market brand, Onvo 60, is set to go on sale in September with monthly deliveries expected to exceed 20,000 units some time next year, chief executive William Li told investors during an earnings call. NIO in May began taking reservations for the compact crossover with a pre-sale price tag of RMB 219,900, cheaper by RMB 30,000 than the entry-level Tesla Model Y. NIO will have three brands in the price segment of RMB 140,000 to RMB 800,000 next year, Li added, as its entry-level lineup, codenamed Firefly, is anticipated to debut at the end of this year.