(Adds details about the quarter)
March 1 (Reuters) – China electric car maker Nio Inc on Monday predicted a jump of up to 18% in deliveries in the current quarter from the fourth quarter, after its quarterly revenue more than doubled, helped by the increase demand for battery-powered vehicles.
Nio emerged as a strong challenger for Tesla in China after it received $ 1 billion in government funding last year that saved the company from bankruptcy and helped ease its cash problems while struggling with recalls and sales. Fall.
While Tesla continues to dominate the electric vehicle market in China, Nio also faces competition from local rivals, such as Xpeng Inc, which in January secured a 12.8 billion yuan credit line from Chinese banks.
Nio, which makes the ES8 and ES6 electric sport utility vehicles, saw its U.S. listed stocks soar more than 10 times last year, while China led the global automotive industry’s recovery from the pandemic COVID-19.
The company’s stock, however, has changed little this year due to concerns about slowing economic growth from new blockages as a result of the increase in coronavirus cases.
Nio predicted deliveries of 20,000 and 20,500 vehicles in the first quarter, compared to 17,353 vehicles in the fourth quarter, but said its deliveries decreased to 5,578 vehicles in February, from 7,225 vehicles in January.
The company’s fourth quarter revenue jumped 133% to 6.64 billion Chinese yuan ($ 1.03 billion) over the previous year. ($ 1 = 6.4648 yuan Chinese renminbi) (Reporting by Akanksha Rana and Ankit Ajmera in Bengaluru; Editing by Amy Caren Daniel)