The NIO ES8. image: NIO

Chinese electric car maker NIO just reported its financial results for the third quarter of this year, indicating $257 million in revenue but with a $357 million loss in the period. The company delivered 4,799 vehicles in the third quarter, compared to 3,553 deliveries in the preceding quarter. In reaction to the earnings reports, NIO’s shares are up more than 50%, trading for $4.17 apiece as of writing.

According to Yahoo Finance, NIO’s quarterly results surpassed analyst expectations, with revenue projections for the third quarter having hovered at around $231 million. NIO’s $257 million in revenue happens to have beat that by a significant margin, but still amid steep losses. NIO has been losing lots of money as it spends to gain ground as a newer entrant to the electric car market.

The company was founded just five years ago and has delivered approximately 30,000 vehicles since inception, a significant number but a much smaller amount compared to that of other EV makers like Tesla. NIO produces premium vehicles that are typically of higher costs, and has managed to capture a substantial part of the premium EV market in China, the world’s biggest market for such.

Amid series of losses, Shanghai-based NIO has implemented cost control measures across its divisions, measures that were able to bring down administrative expenses and R&D costs by 18.1% and 21.3% respectively in the third quarter. Such measures are necessary for a sustainable business, but as of now are not able to even sustain NIO’s operations, as hinted by the company, which says “its cash balance is not adequate to provide the required working capital and liquidity for continuous operation in the next 12 months.” Because of that, NIO says its continuous operation “depends on the Company’s [its] capability to obtain sufficient external equity or debt financing”. Such financing is already being worked on by NIO but are however “subject to certain uncertainties”, the company says.

For the 4th quarter of this year, NIO is forecasting deliveries of “over 8,000” vehicles and approximately $393 million in revenue.