Shares of NIO Inc. fell on Thursday, after the Chinese electric-car maker’s fourth-quarter earnings missed estimates.
The stock has slumped as much as 13% so far in morning trade.
The selloff came after NIO late Wednesday posted a net loss of 5.85 billion yuan ($851.6 million) for the October-December period, sharply widening from a loss of CNY2.18 billion a year earlier and missing an estimated net loss of CNY3.60 billion, according to analysts polled by FactSet.
The worse-than-expected bottom line has been a result of severe margin deterioration. The auto maker’s gross profit margin for the quarter was at 3.9%, compared with 17.2% a year earlier.
NIO attributed the drop in profit partly to higher battery costs during the period. Citi analysts in a note said the margin reading “hugely surprised on the downside.”