NIO Inc. (NYSE: NIO) topped market expectations on revenue and earnings for the first quarter of 2019, sending its shares soaring over 7% in premarket hours on Tuesday.

Total revenues of RMB1,631.2 million ($243.1 million) declined 52.5% from the fourth quarter of 2018, but surpassed analysts’ estimates of $220 million. Vehicle sales were RMB1,535.2 million ($228.8 million), down 54.6% sequentially.

NIO Inc. reports first quarter 2019 earnings results

Net loss attributable to ordinary shareholders was RMB2,652 million ($395.2 million), down 32.8% compared to the first quarter of 2018. Adjusted net loss was RMB2,501.2 million ($372.7 million). Net loss per American depositary share was RMB2.56 ($0.38). Adjusted net loss per ADS was RMB2.42 ($0.36), ahead of forecasts for a loss of $0.47.

Vehicle Deliveries

Deliveries of the ES8 reached 3,989 vehicles in the first quarter of 2019, compared with 7,980 vehicles delivered in the fourth quarter of 2018. Deliveries of the ES8 in April 2019 were 1,124 vehicles, reflecting a greater-than-anticipated slowdown in monthly deliveries mainly due to the reduction in the electric vehicle subsidy and slow macro-economic conditions in China caused by the trade war with the US. Total aggregate deliveries as of April 30, 2019 were 16,461 vehicles.

On May 20, 2019, the company’s GAC-NIO joint venture announced its new brand, Hycan He Chuang, and plans to launch its first vehicle model this year.

Related: NIO Q1 2019 Earnings Preview

In June, NIO’s second production model, the ES6, a 5-seater high-performance premium electric SUV, will roll off the production line and the first deliveries to NIO users will begin in the same month. The company currently has over 12,000 ES6 pre-orders.

Outlook

For the second quarter, NIO expects the sales environment to be more challenging and anticipates an overall sequential decrease in demand and deliveries, as competition accelerates and the general automobile market in China remains muted. Against this backdrop, NIO is focusing on improving its overall network utilization and operating efficiencies.

For the second quarter of 2019, NIO expects total revenues to be RMB1,134 million to RMB1,294 million ($169-193 million), down approx. 20.7-30.5% from the first quarter of 2019.

Related: NIO Q4 2018 Earnings Results

The company expects vehicle deliveries to be between 2,800 and 3,200 units, down approx. 19.8-29.8% from the first quarter of 2019. This outlook incorporates the planned deliveries of several hundred ES6s in June 2019.

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