2020 has been quite the year for NIO investors. It started the year at $3.72 and fell as low as $2.37 in March. Since then its stock price has taken to the moon, reaching a 52-week high of $54.20 in the past week before short-seller Citron Research released a report citing NIO’s unjustifiable valuation, giving it a price target of $25.
However, it’s far from doom and gloom for the Chinese electric-vehicle manufacturer as it came out last week that Ray Dalio’s Bridgewater & Associates almost doubled its stake in the business last quarter. This week’s earnings report will be a big factor in whether this gravy train can get back on track or not.
When is NIO’s Q3 earnings date?
NIO reports its earnings for Q3 2020 on Tuesday, November 17th at 7 pm Eastern Time (8 am Beijing/Hong Kong time, November 18th).
How can I listen to NIO’s earnings call?
To listen to the call and to access the transcript, as well as the shareholder’s letter and the financial statements for the quarter, all you need to do is go to NIO’s investor relations page.
What to Expect
The consensus estimates on Wall Street expect to see a loss per share of $0.17 on revenue of $652.77 million. This is in comparison to a loss per share of $2.38 on revenue of $262.47 million last year. The optimistic forecast is buoyed by NIO already announcing record deliveries for the past quarter of 12,206 which represents a 150% increase year-over-year.
Topics you can expect to hear on the call include news on the 150-kilowatt-hour battery NIO is working on which is expected to double the range of its vehicles, the increased competition from Tesla’s Made in China model, and whether it can maintain its record growth in deliveries.
One aspect I would like to see covered either by the leadership team or in the analysts’ questions section of the call is NIO’s expansion into Europe. While it remains in its early stages, an announcement from the UK banning the production of all new petrol and diesel cars by 2030 this weekend will be sure to put the fire under NIO. The Chinese market will remain the largest when it comes to electric vehicles for the time being, but global demand is increasing and I would hope NIO will have the production facilities in place to capitalize on it.
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Michael's first and favorite stock is Square, which he sees becoming a massive player in the payments industry and a leader in the war on cash.