Nio jumps after losing less money than expected amid Chinese economic slowdown (NIO)

• The Chinese electric-car maker Nio posted a narrower-than-expected first-quarter loss and beat revenue expectations despite the Chinese economic slowdown.
• The Tesla rival's shares rose nearly 5% in pre-market trading Tuesday.
• Watch Nio stock trade live.

The Chinese Tesla rival Nio posted a smaller-than-expected first-quarter loss, according to the company's earnings report, as the Chinese economic slowdown took hold and following the reduction of electric-vehicle subsidies in China.

"Deliveries of the ES8 in the first quarter of 2019 exceeded the Company's expectation despite headwinds from EV subsidy reductions, slowing macro-economic conditions, increased competition, and seasonal factors around the Chinese New Year holiday period," said CFO Louis Hsieh.

Looking ahead, Nio's revenue guidance of $169 million to $193 million fell short of the $284 million that analysts were expecting and represents a decrease of 20% to 30% from a year earlier.

"Looking ahead to the second quarter, we expect an even more challenging sales environment and anticipate overall sequential demand and deliveries to decrease, as competition continues to accelerate and the general automobile market in China remains muted," Hsieh added. 

Nio is currently negotiating a deal where E-Town Investments, a state-owned entity established to support Chinese tech companies, would invest up to $1.5 billion in the start-up. The two companies will establish a joint venture to build a new manufacturing facility for the company's next generation of vehicles.

's like the clothes fashion models wear on the catwalk," he said in Chinese of Tesla's cars. "It's not the same. They may be beautiful, but you can't wear them every day."

Tesla has announced major expansion plans in China despite analyst concerns the weak Chinese economy, decreased subsidies, and intense competition will weigh on the company's profitability. 

Nio is down 36% this year.

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