Chinese electric vehicle manufacturer, Nio (NYSE: NIO) reported its third quarter financial results on Monday morning. The Company surpassed analysts’ estimates for the quarter, which sent shares higher by 42%.

For the quarter, Nio reported earnings loss of RMB 2.38 (USD 0.33) per share on revenues of RMB 1,836.8 Million (USD 257 Million). Analysts expected Nio to report earnings loss of USD 0.34 per share on revenue of USD 230.08 Million.

Year-over-year, Nio’s revenue increased by 21.8%, while its net loss continued to narrow down. Net losses at the end of the quarter was RMB 2,521.7 Million (USD 352.8 Million), representing a decrease of 23.3% year-over-year.

The stronger-than-expected quarter was driven by Nio’s 21.5% year-over-year increase in vehicle sales. The Company also narrowed down its vehicle margin losses, leading to improved losses during the quarter.

Nio highlighted that it delivered a total of 4,799 ES8 and ES6 vehicles during the third quarter, representing an increase of 35.1% quarter-over-quarter.

“Our strong performance was attributable to the competitiveness of our products and services, the recognition and strong support from our user community, and our sales network expansion strategy as we continue to launch more efficient NIO Spaces. We expect over 8,000 vehicles to be delivered in the fourth quarter, a record of quarterly deliveries in our history. With that, the total aggregate deliveries in 2019 are estimated to reach over 20,300,”said William Bin Li, founder, chairman and chief executive officer of NIO.

For the fourth quarter, Nio is expecting over 8,000 vehicle units to be delivered, representing an increase of 66.7% quarter-over-quarter. The Company also anticipated revenues to be approximately RMB 2,810 Million (USD 393.2 Million), representing an increase of 53% quarter-over-quarter.