Chinese electrical carmaker and Tesla (TSLA) – Buy Report rival NIO (NIO) – Buy Report moved nearer to profitability in its next quarter as increasing demand for electrical vehicles aided the Shanghai firm narrow its losses for the fourth quarter at a row.NIO stated its second-quarter reduction shrunk to 1.2 billion yuan ($173 million) by 3.3 billion yuan a year before. On an adjusted basis, the business dropped 1.1 billion yuan1.08 yuan a share, vs. a loss of even 3.2 billion yuan, or 3.11 yuan one share a year ago. Analysts polled by FactSet was anticipating a per-share reduction of 1.70 yuan. Revenue almost doubled to 3.7 billion yuan (US$526.4 million) vs. 1.5 billion yuan at the similar year-ago period, and was above analysts’ forecasts of 3.5 billion yuan.Demand because of its ES6 and ES8 electrical SUVs continued to entice buyers since the coronavirus pandemic along with also a return to semi-normalcy controlled Chinese lifestyle. NIO said it’s delivered 17,702 vehicles up to now in 2020, more than twice a year ago.NIO, that went public at New York at 2018, has cut prices and borrowed funds to maintain itself usable throughout the pandemic. Gross margin, or earnings minus manufacturing costs, was favorable for the first time at the next quarter.Still, NIO lags much behind Tesla, whose registrations at China topped 50,000 at the first half of 2020. Tesla is also prepping to begin producing its Model Y crossover at its Shanghai plant after ramping up output its longer-range Model 3.Tesla-Inspired XPeng Motors Files for U.S. IPOShares of NIO were up 8.3% in $15.39 in premarket trading on Tuesday.