What happened
Nio's(NYSE:NIO)earnings aren't even out yet, but already shares of the Chineseelectric car makerare running downhill.
As of 10 a.m. EST, Nio stock has shed 4.4% of its market capitalization.
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So what
Nio announced earlier this month that it will report fiscal third-quarter 2021 earnings after close of trading this afternoon. What will Nio report?
Well, earlier this month, the company warned of a 27.5% plunge in its October deliveries, relative to cars delivered in October 2020. That certainly sounds ominous. On the other hand,Nio also saidthat it is continuing to expand its ability to produce new cars, aiming for an annual production capacity of 240,000 electric vehicles.
Meanwhile, the company remains on track to begin selling its new ET7 luxury sedan in China next year, and to begin sales ofits ES8 electric SUV in Norwayas well, both of which are developments that could help improve sales next year.
Now what
On Wall Street, forecasts call for Nio to report third-quarter sales more than doubling to $1.46 billion. If October's negative sales surprise upends that expectation, things could get ugly -- the more so because Nio's earnings are anticipated to remain negative with a loss of $0.09 per share.
And yet, the more decisive factordriving Nio stock up or downtonight may be the company's forecast. On Yahoo! Finance, analysts are hoping to see Nio finally turn a profit in the fourth quarter -- $0.01 per share. The company's still probably at least a year away from delivering full-year profits, mind you. But if Nio can at least promise to meet analyst expectations in Q4, October's negative delivery surprise should soon be forgotten.