Chinese electric vehicle maker Nio (NYSE: NIO) generated total revenue of RMB 1.37 billion (USD 193.8 million) in sales during the quarter ended 31 March 2020, down 15.9% year-on-year (YoY), as vehicle deliveries were hampered by the COVID-19 outbreak, the company announced on Thursday.

Nio’s share price dropped by 8.15% to USD 3.83 in Thursday trading following the earnings release.

Both total revenues and vehicles sales were down over 50% quarter-on-quarter. The Shanghai-based automaker’s vehicle deliveries fell to 3,838 units during the quarter, compared to 8,224 in the fourth quarter of 2019.

The firm however booked a narrowing net loss of RMB 1.69 billion (USD 238.9 million), representing a decrease of 35.5% YoY. Nio attributed the decreased loss to a series of restructuring and operational optimization initiatives.

The company also mentioned signs of recovery during the earnings call, as 3,155 vehicles were delivered in April, an increase of 105.8% compared to March.

Nio expects demand to rebound quickly, and in case of no other disruptions to the supply chain in China, the company predicts a record of between 9,500 and 10,000 deliveries for the second quarter, up 160% from the first quarter, for a total expected revenue of between RMB 3.37 billion to RMB 3.53 billion.

New energy vehicle charging infrastructure is a key component of the Chinese government’s plan to enhance the company’s tech infrastructure, which was revealed at the Two Sessions. The overall passenger car market in China slumped 41% YoY during the quarter, as the company mentioned on the earnings call.

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