By Senad Karaahmetovic

After the Chinese automaker released Q1 results, and provided guidance, NIO’s shares (NYSE:) fell more than 7 percent in premarket trade.

According to NIO, the net loss per share for electric vehicles (EVs) was $0.18. This is down from $0.47 for the same period last year. NIO’s quarterly revenue was $1.56 Billion in the quarter. This is a decrease of the $1.19 billion reported in the previous year.

This compares to consensus estimates for a $0.13 loss per shares on $1.49billion in revenue during the first quarter. Up 28.5% YoY, the company produced 25,768 copies in its first quarter.

NIO projects revenue to be in the $1.47-$1.6 billion range for Q2 compared with the consensus estimate of $1.86 trillion.

Citi analyst Jeff Chung remains positive on Nio stock as he says “the 1Q result alone is neutral to slightly positive.”

“Overall 1Q GPM was below consensus due to sales mix changes and asymmetric battery cost & car-price hikes; However at the bottom line level the net loss was narrowed QoQ due to effective cost saving on SG&A. Nio gave very strong June sales guidance ceiling at 13k units, or 84% MoM, which may potentially implies 3Q volume may exceed 40k level (in our view), with ample re-rating upside risk ahead on margins and asset-turns,” Chung told clients after the results.

Morgan Stanley analyst Tim Hsiao noted “strong Q2 volume guidance.”