Nio (NYSE: NIO) released its fourth-quarter 2024 earnings report today, revealing a record net loss despite improved sales growth. The company aims to sustain annual vehicle sales of over 2 million units and achieve gross margins of 20 percent for long-term survival.
Nio will maintain R&D expenses at RMB 3 billion per quarter this year but focus on high-return projects. Meanwhile, the first-quarter SG&A expenses will remain challenging due to lower sales volume.
Subsequent Nio models will utilize in-house developed Shenji autonomous driving chips. The company’s F3 factory in Hefei is expected to come online this year, resulting in increased capital expenditures.
Nio has access to various financing channels and plans to flexibly manage its capital market strategy. With the rise of new products and suppliers’ molds coming into use, the company expects improved operating cash flow starting from the second quarter.
The Nio brand will maintain a stable model range with prices ranging from RMB 300,000 to RMB 800,000. The Onvo brand’s sales outlets are rapidly expanding, reaching over 400 stores.
Nio targets doubling sales in 2025 and aims for an increased gross margin of 15 percent for the Onvo brand by then. Two new models under the Onvo brand are expected to contribute significantly to the company’s gross profit growth.
The company plans to launch nine new models across three brands this year, with a focus on improving cost control from R&D to supply chain management. Nio’s sub-brand Onvo achieved a positive vehicle margin in its early production stage.
Overall, Nio is confident of achieving profitability by the fourth quarter of 2025 through improved sales growth and cost control measures.
Source: https://cnevpost.com/2025/03/21/nio-q4-2024-earnings-call-live