NIO's (NYSE: NIO) negative gross margin and patchy quarterly car deliveries
Yuchen Xia
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February 20, 2020
Here we'll look at NIO's gross margin history, as well as its car delivery history, to gauge if the company can beat the market's expectations. We're focusing on these two metrics because car manufacturing is a scale business. If the company can ship more cars then its margins will rise because a large proportion of the costs of running a car company are fixed. So the general rule of thumb is that higher volume will translate into the higher gross margin and thus net profit margin.