NIO (NYSE: NIO) launched its initial public offering (IPO) on the NYSE on September 12, 2018, at a price of $ 6.26 per share.
At the time, market giant Tesla was worth $ 58 a share. CEO Elon Musk had just failed in his attempt to privatize the company and it was struggling to meet its production targets. However, as of January 29, 2021, NIO stock had risen 810% to $ 57, while Tesla had risen 1,267% to $ 793. But since then NIO has fallen to $ 28, while Tesla has spent most of the past two months above the $ 1,000 mark.
Meanwhile, competitors Lucid and Rivian both launched their IPOs this year. Despite being far from highs in their stock prices, the companies have a combined market valuation of $ 150 billion, although they deliver almost no vehicles.
But NIO delivered 156,581 already. And while some investors have been blown away by the brilliant new offerings, the Chinese operator has been working quietly in the background towards long-term sustainability.
NIO share price: Q3 results
NIO has defended as a “pioneer and leading company in the premium intelligent electric vehicle market”. It delivered 24,439 vehicles between July and September, up 11.6% quarter over quarter and 100.2% year over year. CEO William Bin Li pointed out that the company “hit a new record for quarterly deliveries … our new orders hit a new record in October.” And, encouragingly, the company delivered a total of 80,940 vehicles in 2021, an increase of 120.4% year-over-year.
In addition, vehicle sales revenue increased 102.4% to $ 1.34 billion, while gross margin increased 240% to $ 309.3 million year-on-year. Gross margin reached 20.3%, while net cash and cash equivalents reached $ 7.3 billion. And the adjusted net loss fell 42.9% to $ 88.4 million from the third quarter of 2020. These numbers all seem to be heading in the right direction.
But operating losses increased 30% to $ 153.9 million from the previous quarter, while research and development (R&D) spending rose 101.9% year-over-year to 185, $ 2 million. As interest rates rise, these expenses could hit the stock hard. And a certain point of view is important. Tesla delivered around 600,000 electric vehicles in 2021, while historic automaker Toyota alone sold over 9,000,000 ICE cars in 2020.