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EV Roundup: Quarterly Earnings of NIO, XPEV & WKHS Grab Limelight
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Last week, China’s electric vehicle (EV) companies NIO Inc. (NIO - Free Report) and XPeng Inc. (XPEV - Free Report) released third-quarter 2024 results. U.S.-based commercial EV developer Workhorse Group Inc. (WKHS - Free Report) also reported its quarterly results. Meanwhile, EV giant Tesla (TSLA - Free Report) and California-based EV startup Rivian (RIVN - Free Report) are settling a four-year lawsuit over alleged battery tech theft. Tesla expects case dismissal by Dec. 24 after a conditional agreement.
Delving Deeper Into the Top Stories
NIO incurred a third-quarter 2024 loss per share of 36 cents, wider than the Zacks Consensus Estimate of a loss of 32 cents. The company had reported a loss of 37 cents in the year-ago quarter. Revenues of $2.66 billion missed the Zacks Consensus Estimate of $2.70 billion. The top line declined 2.1% from the corresponding quarter of 2023.Gross profit came in at $286 million, up 31.8% from the year-ago quarter, thanks to decreased cost of sales. Gross margin was 10.7%, up from 8%. Vehicle margin in the reported quarter climbed to 13.1% from 11% in the third quarter of 2023 due to lower material cost per unit.
As of Sept. 30, 2024, cash and cash equivalents totaled $3.39 billion and long-term debt amounted to $1.6 billion. For fourth-quarter 2024, NIO projects deliveries in the range of 72,000-75,000 vehicles, implying a rise of 43.9-49.9% year over year. Revenues are estimated between $2.8 billion and $2.9 billion, indicating a rise of 15-19.2% year over year.
XPeng’s third-quarter 2024 loss per share narrowed to 27 cents from the year-ago quarter’s loss of 62 cents. Total revenues rose to $1.44 billion from $1.17 billion reported in the corresponding quarter of 2023. Vehicle margin rose to 8.6% against negative 6.1% for the same period of 2023. Vehicle margins also improved from 6.4% in the second quarter of 2024. XPeng reported a gross margin of 15.3% compared with the negative gross margin of 2.7% in the same period of 2023.
As of Sept. 30, 2024, XPeng’s cash and cash equivalents totaled $1.5 billion and long-term debt was at $908 million. For the fourth quarter of 2024, XPeng expects vehicle deliveries in the range of 87,000-91,000, suggesting a rise of 44.6-51.3% year over year. Total revenues are expected to rise 17.2-24.1% year over year.
Workhorse reported an adjusted loss of 88 cents per share for the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 85 cents. The company had incurred an adjusted loss of $2.80 in the year-ago quarter. Workhorse generated net revenues of $2.51 million, which missed the Zacks Consensus Estimate of $6 million. Revenues fell 17.2% year over year. As of Sept. 30, 2024, Workhorse had $3.24 million in cash and cash equivalents, down from $25.85 million as of Dec. 31, 2023.
In a separate development, Workhorse delivered its W56 electric step van to NorthStar Courier, a FedEx Ground Service Provider in Minneapolis, marking the W56’s first deployment outside California. Facilitated by Ziegler Truck Group, the W56 supports efficient parcel delivery with zero emissions. Workhorse’s W56, built in Indiana, offers extended range and cargo flexibility, solidifying its role in sustainable last-mile delivery solutions.
Tesla and Rivian are moving toward resolving a four-year legal dispute over alleged battery technology theft. In 2020, Tesla accused Rivian of stealing trade secrets by hiring former TSLA employees and encouraging them to bring proprietary documents. Rivian has consistently denied these claims. Tesla initially alleged that the hired employees—recruiters, a manager of Tesla’s charging networks and an EHS manager—took confidential engineering information to Rivian.
In 2021, Tesla expanded the lawsuit, accusing Rivian of stealing core battery technology for its next-generation products. Attempts to settle out of court initially failed, leading the case to trial in 2023. Now, Tesla has informed a California state court that a conditional agreement has been reached and expects to dismiss the case by Dec. 24 upon fulfilling the settlement terms. The specifics of the agreement remain undisclosed, and neither automaker has publicly commented on the matter.
Image: Bigstock
EV Roundup: Quarterly Earnings of NIO, XPEV & WKHS Grab Limelight
Last week, China’s electric vehicle (EV) companies NIO Inc. (NIO - Free Report) and XPeng Inc. (XPEV - Free Report) released third-quarter 2024 results. U.S.-based commercial EV developer Workhorse Group Inc. (WKHS - Free Report) also reported its quarterly results. Meanwhile, EV giant Tesla (TSLA - Free Report) and California-based EV startup Rivian (RIVN - Free Report) are settling a four-year lawsuit over alleged battery tech theft. Tesla expects case dismissal by Dec. 24 after a conditional agreement.
Delving Deeper Into the Top Stories
NIO incurred a third-quarter 2024 loss per share of 36 cents, wider than the Zacks Consensus Estimate of a loss of 32 cents. The company had reported a loss of 37 cents in the year-ago quarter. Revenues of $2.66 billion missed the Zacks Consensus Estimate of $2.70 billion. The top line declined 2.1% from the corresponding quarter of 2023.Gross profit came in at $286 million, up 31.8% from the year-ago quarter, thanks to decreased cost of sales. Gross margin was 10.7%, up from 8%. Vehicle margin in the reported quarter climbed to 13.1% from 11% in the third quarter of 2023 due to lower material cost per unit.
As of Sept. 30, 2024, cash and cash equivalents totaled $3.39 billion and long-term debt amounted to $1.6 billion. For fourth-quarter 2024, NIO projects deliveries in the range of 72,000-75,000 vehicles, implying a rise of 43.9-49.9% year over year. Revenues are estimated between $2.8 billion and $2.9 billion, indicating a rise of 15-19.2% year over year.
XPeng’s third-quarter 2024 loss per share narrowed to 27 cents from the year-ago quarter’s loss of 62 cents. Total revenues rose to $1.44 billion from $1.17 billion reported in the corresponding quarter of 2023. Vehicle margin rose to 8.6% against negative 6.1% for the same period of 2023. Vehicle margins also improved from 6.4% in the second quarter of 2024. XPeng reported a gross margin of 15.3% compared with the negative gross margin of 2.7% in the same period of 2023.
As of Sept. 30, 2024, XPeng’s cash and cash equivalents totaled $1.5 billion and long-term debt was at $908 million. For the fourth quarter of 2024, XPeng expects vehicle deliveries in the range of 87,000-91,000, suggesting a rise of 44.6-51.3% year over year. Total revenues are expected to rise 17.2-24.1% year over year.
Workhorse reported an adjusted loss of 88 cents per share for the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 85 cents. The company had incurred an adjusted loss of $2.80 in the year-ago quarter. Workhorse generated net revenues of $2.51 million, which missed the Zacks Consensus Estimate of $6 million. Revenues fell 17.2% year over year. As of Sept. 30, 2024, Workhorse had $3.24 million in cash and cash equivalents, down from $25.85 million as of Dec. 31, 2023.
In a separate development, Workhorse delivered its W56 electric step van to NorthStar Courier, a FedEx Ground Service Provider in Minneapolis, marking the W56’s first deployment outside California. Facilitated by Ziegler Truck Group, the W56 supports efficient parcel delivery with zero emissions. Workhorse’s W56, built in Indiana, offers extended range and cargo flexibility, solidifying its role in sustainable last-mile delivery solutions.
Tesla and Rivian are moving toward resolving a four-year legal dispute over alleged battery technology theft. In 2020, Tesla accused Rivian of stealing trade secrets by hiring former TSLA employees and encouraging them to bring proprietary documents. Rivian has consistently denied these claims. Tesla initially alleged that the hired employees—recruiters, a manager of Tesla’s charging networks and an EHS manager—took confidential engineering information to Rivian.
In 2021, Tesla expanded the lawsuit, accusing Rivian of stealing core battery technology for its next-generation products. Attempts to settle out of court initially failed, leading the case to trial in 2023. Now, Tesla has informed a California state court that a conditional agreement has been reached and expects to dismiss the case by Dec. 24 upon fulfilling the settlement terms. The specifics of the agreement remain undisclosed, and neither automaker has publicly commented on the matter.
While TSLA sports a Zacks Rank # (Strong Buy), RIVN carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
The following table shows the price movement of some of the major EV players over the last week and six months.
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the industry.