08:41 AM EDT, 06/06/2024 (MT Newswires) -- Nio's (NIO) first-quarter revenue declined from the year before as the Chinese automaker delivered fewer vehicles on a sequential and annual basis.

The company's adjusted loss narrowed to 2.39 renminbi ($0.33) per American depositary share for the March quarter from 2.51 renminbi a year ago. Three analysts polled by Capital IQ expected a per-share loss of 2.82 renminbi. Revenue fell 7.2% to 9.91 billion renminbi, while five analysts estimated 10.45 billion renminbi.

Vehicle sales slipped 9.1% to 8.38 billion renminbi due to lower average selling prices because of "user rights adjustments" since June 2023, as well as delivery volume reduction. Sales dropped 46% from the prior three-month period as seasonal factors weighed on delivery volume.

Nio delivered 30,053 vehicles in the first quarter, reflecting a 3.2% annual decrease. Deliveries slumped about 40% from the 50,045 units distributed in the preceding quarter. The automaker's shares on the New York stock exchange slid 3.8% in premarket activity.

"We are continuously enhancing the operational efficiency of our power and service network and aim to consistently extend our services to a wider user base," Chief Financial Officer Steven Wei Feng said in a statement. "Our focus remains on strengthening execution efficiency, optimizing cost management, and accelerating market share growth."

Gross margin stood at 4.9% versus 1.5% the year before. Operating expenses rose to 5.88 billion renminbi from 5.27 billion renminbi in the 2023 quarter, according to the company.

For the second quarter, the EV maker expects revenue to be in a range of 16.59 billion renminbi to 17.14 billion renminbi, representing annual growth of 89% to 95%. Five analysts polled by Capital IQ expect revenue of 14.44 billion renminbi. Nio anticipates delivering between 54,000 and 56,000 vehicles for the quarter, having distributed 15,620 and 20,544 units in April and May, respectively.

The vehicle deliveries in the past two months reflect "solid sequential growth" amid "intensifying market competition," Chief Executive William Bin Li said. "We are poised to expand into the broader mainstream mass market and embark on the next stage of high-quality growth," according to Li.

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