Nio is by no means a large electric car company. Or a large car company in any aspect. At its Q3 2020 report, it celebrated the fact that its three models reached a volume of 12,206 units: 8,660 ES6s, 3,530 ES8s, and 16 EC6s. Relatively speaking, though, those numbers represent an increase of 146.1 percent compared to Q3 2019, which makes the celebration more than fair.
And these are not the only numbers the company was happy about. When it comes to total revenues, the company achieve a sum that Iron Maiden would use for a song: $666.6 million – well, they already have, only with a six less. That’s what the exchange rate on September 30 made of the RMB4,526.0 million the company earned.
When it comes to gross profits, the company had a modest profit: RMB585.8 million, or the equivalent to $86.3 million. Consider that Nio lost RMB221.6 million in Q3 2019 and that Q2 2020 saw only RMB313.1 million of profit – RMB272.7 million less than the last figures – and the $86.3 million will look fantastic.
Apart from the good results getting better, the ones that have to be avoided were smaller, such as the net loss. In Q3 2020, it was RMB1,047.0 million –$154.2 million. That’s 58.5 percent lower than the Q3 2019 number and 11 percent lower than in Q2 2020.
Operation losses were also reduced to RMB946.0 million – $139.3 million. In Q3 2019, they amounted to RMB2,338.8 million, making the latest result 60.7 percent lower than it was in the past year.
What concerns us a bit is that these numbers are still not audited. Even if they do not change much when they finally are, having a third and reputable party confirm the good results is crucial.
One explanation is that we are in November, and Nio probably waited for too much for the auditor to finish their work. Another one is that it is looking for a good audit company, which can be a great business opportunity for anyone up to the task. Whatever the reason is, we hope Nio fixes that soon. If the numbers are accurate, that will probably be one of the few left things to sort out in the business.