(Yicai Global) Nov. 11 -- Nio’s shares surged after the Chinese electric carmaker said it expected revenue to almost double this quarter to as much as USD2.7 billion, after income climbed by a third in the previous three months.

Nio [HKG: 9866] gained 20 percent to finish in Hong Kong today at HKD84.70 (USD10.80). Its New York-listed stock [NYSE: NIO] closed up 11.8 percent at USD10.34 yesterday.

Revenue will likely soar 75 percent to 94 percent to between USD2.4 billion and USD2.7 billion in the three months ending Dec. 31 from a year earlier, the Shanghai-based company said yesterday. Vehicle deliveries are expected to jump 72 percent to 92 percent to 43,000 to 48,000.

Third-quarter revenue rose 33 percent to USD1.8 billion, while Nio’s net loss widened five times to USD577.9 million due to higher battery costs, its earnings report showed. The company also delivered a record number of cars in the quarter, up 29 percent to 31,607, it said.

“We achieved solid top line growth in the third quarter of 2022 against a challenging market environment,” said Chief Financial Officer Stephen Feng.

The price of lithium carbonate, the main material used in electric car batteries, was about CNY500,000 (USD70,330) per ton in the three months ended Sept. 30, versus CNY200,000 per ton in the same period of last year.

“Following the delivery of our new product lineup based on Nio Technology 2.0 catering to different market segments, we have witnessed strong growth momentum in user demand and robust foot traffic, especially after the debut of ET5s in stores from September,” founder William Lin said.

Nio expects the ET5, a mid-size smart electric sedan, to underpin a “substantial acceleration” of revenue growth in the fourth quarter, he added. The firm has been working closely with its supply chain partners to speed up production and deliveries, Li said. 

Editor: Futura Costaglione