Despite the iShares MSCI China ETF (NASDAQ:MCHI) up by about 16% year-to-date, beating both the S&P 500 and Nasdaq 100, Nio (NYSE:NIO) stock is down by nearly 40% this year.
However, a major catalyst is on the way, as Nio has confirmed that it will report its first-quarter earnings on June 6 before the market opens. Last month, the electric vehicle (EV) company delivered 15,620 vehicles, up by 134.6% year-over-year (YOY). That brought year-to-date deliveries to 45,673 vehicles, up by 21.2% YOY.
For the quarter, analysts are expecting revenue to fall by 2.10% to $1.444 billion. That would mark the first YOY revenue decrease since Q2 of 2023 following two quarters of growth. Meanwhile, gross margin, while still low, is expected to be 7.50% compared to 8% during Q4 and 3.90% YOY.
Profitability remains a key issue for Nio. Analysts are forecasting a GAAP EPS loss of 28 cents compared to a loss of 35 cents a year ago. These analysts expect Nio to reach profitability by 2027 with a GAAP EPS of 23 cents.
5 Investors Betting Big on NIO Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. However, Nio’s Q1 13F activity shows many institutional investors jumping ship.
A total of 455 13F filers disclosed a stake, down from 486 filers last quarter. These filers own a total of 327.61 million shares, down by a significant 21.25% from 416 million shares. That isn’t an encouraging signal. Baillie Gifford emerged as the largest Q1 seller of NIO after selling 95.73 million shares. Tencent (OTCMKTS:TCEHY) was another big seller with its 28.45 million share sale.
With that in mind, let’s take a look at Nio’s current top five shareholders:
- CYVN Investments: 418.83 million shares. CYVN’s Q1 13D filing revealed an increase of 12 shares.
- CEO William Li: 178.96 million shares. Li’s Q4 13D revealed no changes.
- Tencent: 95.65 million shares. Tencent’s Q1 13D filing revealed that it sold 28.54 million shares.
- BlackRock (NYSE:BLK): 62.63 million shares. BlackRock added 9,847 shares during Q1.
- Morgan Stanley (NYSE:MS): 28.21 million shares. Morgan Stanley added 10.11 million shares during Q1.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
