November 11, 2022: -On Thursday, Chinese electric vehicle maker Nio reported a loss of $577.9 million for the third quarter, hugely more comprehensive than a year ago, despite strong earnings after a 29% increase in vehicle sales.

Nio said it provided 31,607 vehicles in the next quarter, up 29% from the third quarter of 2021 and a nite for the firm.

Nio’s gross margin was 13.3%, which improved from the 13% margin it reported in the second quarter but decreased from 20.3% a year ago.

Nio stated that the year-over-year margin decrease was due to lower sales of regulatory credits, higher costs shrinking margins on its vehicles and more heightened spending on its expenses and service networks.

CEO William Bin Li stated in a statement that the firm has seen strong interest in its recent ET5 sedan, which he anticipates “will support a substantial acceleration of our overall earning growth in the fourth quarter of this year.” The ET5, the company’s second sedan, started shipping in September.

With the ET5 available, Nio works to improve production and shorten customer waiting times, Li added. Nio said that investors should be anticipating it to provide 43,000 and 48,000 vehicles in the fourth quarter, which generated a total income of RMB17,368 million ($2.4 billion) and RMB19,225 million ($2.7 billion).