After reporting continuous losses since it was founded in 2014, Chinese electric carmaker Nio has finally reported its first profitable quarter. The achievement is especially significant given that the company was able to achieve amid the global economic downturn caused by the coronavirus pandemic.

Nio, which is often designated as China's Tesla, mentioned in its filing with the New York Stock Exchange on Tuesday that it was finally able to generate a profit during its second quarter. The company reported relatively humble earnings of 313.1 million yuan, or roughly $44.3 million, for the three month period.

Net losses attributable to shareholders dropped by about 64 percent year-on-year to about 1.2 billion yuan. For its previous quarter, Nio reported a gross loss of 167.5 million yuan. Prior to that, Nio had been struggling with its liquidity. The company stated late last year that it needed to raise capital to continue its operations in 2020. The Shanghai-based company reported a $1.6 billion loss in 2019.

 For its latest quarter ending in June, total revenues jumped by about 171 percent compared with the previous quarter. Revenues reached more than 3.7 billion yuan, or roughly double its previously reported revenues during the same period last year.

Nio sold a total of 10,331 fully-electric vehicles in the second quarter, or nearly triple the number of units sold during the first quarter. July was the company's most profitable month, with 3,533 vehicles sold.

Following the news, Nio's share prices in New York surged by more than 10 percent, reaching a high of $15.25 per share. The stock then corrected and ended the day lower at $12.99 per share. Since the start of the year, Nio's share prices have rallied, surging by more than 257 percent since June.

Nio attributed the gains for the quarter to the continued supporting measures imposed by the Chinese government aimed at bolstering the country's new energy sector. It also attributed the gains to increased investor interest in its operations, particularly from tech giants such as Tencent Holdings. In June, Tencent increased its stake in the company to 15.1 percent, injecting more than $10 million in new capital. Tencent is currently the largest shareholder, followed by Nio's founder and chairman, William Li Bin.