NIO's Earnings Report Present Strongest Quarterly Guidance, Turning Losses into Gains in 2026

 

 

On the evening of November 20, NIO (NYSE: NIO; HKEX: 9866; SGX: NIO) released its financial results, showing that operating income in the third quarter of 2024 was 2,661.0 million, increasing 7.0% from the previous year. The gross profit margin increased to 10.7%. Vehicle deliveries were 61,855, setting a new single-quarter high. However, NIO's October deliveries were 20,976 units, declining year-over-year.

 

 

Regarding the decline, NIO's CEO William Li responded on the earnings call that NIO's October deliveries were down due to its decreased promotional spending. Because NIO had previously adjusted its promotional strategy, the decline in deliveries was within its expectations.

 

William Li said that NIO's goal is to continue to improve the gross margin. Qu Yu, NIO's chief financial officer, added to his statement by emphasizing that the company has increased its gross margins through continued cost optimization to the point of having positive free cash flow.

 

Looking ahead, NIO expects full-year deliveries in 2024 to range from 242,300 to 245,300. William Li specified that NIO's delivery growth target was 100% year-on-year growth in 2025.

 

According to Qu Yu, NIO's three brands, NIO, ONVO, and Firefly, will drive sales into faster growth in 2025. Data supports NIO's growth expectations. William said that the multiple-brand strategy has proven successful with increased sales.

 

However, the market is more concerned about NIO's quarterly losses than its growth expectations.

 

To reassure the market, William Li gave a profitability timetable, emphasizing that with the doubling of sales in 2025, the overall operation of NIO will continue to achieve positive growth, expecting that the loss will narrow in 2025 and achieve profitability in 2026. In addition, NIO will receive RMB 3.3 billion of strategic investment in the fourth quarter of 2025. By then, Li said, NIO's cash reserves will be further boosted, providing more adequate protection for high-speed growth in 2025.

 

As of the close of the Hong Kong stock market in China, NIO slid 0.55% on November 21st.