Nio $NIO ( ▼ 0.73% ) got a little spark Tuesday morning after reporting a narrower Q3 loss than analysts were bracing for. The EV maker logged a 15 cent per-share adjusted loss, beating expectations for a 23 cent shortfall and giving the stock a quick jolt in early trading.
Revenue told a mixed story. Nio booked $2.7 billion in vehicle sales, up 15 percent from last year but slightly under estimates as rising volume clashed with a lower average selling price. Deliveries hit 87,071 for the quarter, up more than 41 percent year over year and landing at the low end of the company’s projected range. Vehicle margin also improved to 14.7 percent, up from 13.1 percent a year ago.
Looking ahead, Nio expects to deliver 120,000 to 125,000 vehicles in Q4. Hitting even the bottom of that range would push full-year deliveries above 321,000, topping Wall Street’s 316,000 estimate.
China’s homegrown EV arms race is not slowing down. Nio, BYD $BYDDY ( ▲ 0.98% ) , and XPeng $XPEV ( ▼ 2.06% ) continue to battle it out with aggressively priced models that are making life harder for outside players like Tesla $TSLA ( ▲ 1.71% ), especially in the mass-market segment where China’s local brands are hitting their stride.