NIO Reports Mixed Financial Results for Q3 2024

NIO Inc., a prominent player in the global smart electric vehicle market, has announced its unaudited financial results for the third quarter of 2024. The company reported total revenues of RMB18.67 billion (approximately US$2.66 billion), marking a slight decline of 2.1% compared to the same period in 2023. Despite the decrease in total revenues, vehicle deliveries reached a new quarterly record with 61,855 units, an 11.6% increase year-over-year.

The vehicle margin improved to 13.1% in Q3 2024, up from 11.0% in the same quarter of the previous year, attributed to reduced material costs. However, the net loss for the quarter widened by 11% to RMB5.06 billion. Operating expenses saw a significant rise, impacting the overall financial performance.

«In the third quarter of 2024, we achieved a record-breaking delivery of 61,855 smart electric vehicles,» stated William Bin Li, founder, chairman, and CEO of NIO, during the announcement. Li emphasized the company’s strong market positioning in China’s premium battery electric vehicle (BEV) segment, noting over 40% market share for vehicles priced above RMB 300,000.

NIO anticipates its fourth quarter deliveries to range between 72,000 and 75,000 units, which would represent a significant increase of up to 49.9% from the previous year’s fourth quarter. The company also remains optimistic about future growth, expecting further expansion of production capacity and market presence with the recent launch of the ONVO L60, a mid-size family smart electric SUV.

The strategic investment of RMB3.3 billion in NIO China, alongside NIO’s own financial commitment, signals strong confidence from investors in the company’s growth prospects. The ONVO brand aims to cater to a broader market with plans for releasing new models such as the flagship ET9 and the Firefly brand targeting compact vehicles.

Stanley Yu Qu, NIO’s chief financial officer, highlighted the positive free cash flow for the quarter and plans for increasing sales volume through a robust product cycle involving three distinct brands starting in 2025. «We expect this momentum will drive continued improvements in the Company’s operational and financial performance,» added Qu.

Despite achievements in sales volume and margins, the declining average selling price and the rise in operating expenses pose challenges for sustainable profitability. NIO continues to focus on strategic market positioning and cost optimization efforts to navigate intense competition in the automotive industry.