August 30, 2023: Chinese E.V. maker Nio lost $835.1 million in the next quarter, more than twice its year-ago loss, as deliveries of its upscale EVs dropped amid a transition to an updated vehicle outlet and a broader economic slowdown in China.

Nio’s adjusted figures exclude share-based compensation expenses. GAAP, the company stated a net loss of $835.1 million, or 51 cents per share.

The company reported a net loss of 6.06 billion in Chinese yuan or 3.70 per share. A year ago, Nio registered a net loss of 2.76 billion yuan, or 1.68 yuan per share, on revenue of 10.29 billion yuan.

Nio’s gross margin on vehicles for the second quarter was 6.2% in the second quarter, down from 16.7% a year ago but up from 5.1% in the first quarter of 2023.

Nio launched a revamped version of its mainstay ES6 crossover on its new “NT2.0” platform in May and a station wagon version of its ET5 sedan in June. The refreshed lineup drives better results, with 20,462 vehicles delivered in July alone.

The company delivered just 23,520 vehicles in the second quarter as it sold down the last of its outgoing models with substantial discounts.

CEO William Bin Li said in a statement that the July result was enough to put Nio at the top of China’s sales charts for EVs priced above 300,000 yuan (about $41,000) for the month.

“We expect a solid growth in vehicle deliveries in the second half of 2023,” he said.

Nio also boosted its balance sheet in July, closing a $738.5 million equity investment from a fund controlled by the administration of Abu Dhabi on July 12. As of June, the firm had $4.3 billion in cash and equivalents.

Nio now expects to deliver between 55,000 and 57,000 vehicles in the third quarter, especially from the 31,607 EVs it had in the third quarter of 2022. It expects its revenue to fall between $2.61 billion and $2.69 billion, up from $1.83 billion in the year-ago period.