Shares of NIO were down about 8%, or $1.57 today.

While the company beat revenue expectations, and reported a better than expected net loss, the company is still showing a drop in its profit margins. In fact, gross margins dropped to 14.6% from 17.2% quarter over quarter.  Revenue came in at $1.56 billion – a 24% jump year over year.  Adjusted loss per share was 13 cents, as compared to four cents year over year.  Gross margins came in at 14.6%, as compared to 19.5% year over year.

“Nio delivered 25,768 vehicles in the first quarter, up from 20,060 a year ago. Second-quarter deliveries are on pace to reach between 23,000 and 25,000 vehicles, the company said, suggesting a particularly strong June,” added CNBC.

Technically, the NIO stock just failed at double top resistance, and could test support just under $17 a share next from a current price of $18.84.