NIO is still working towards its goal of breaking even in the fourth quarter.
On September 2, NIO (NYSE: NIO; 09866.HK) released its second-quarter 2025 financial results. The company's revenue for the second quarter was 19.009 billion yuan, a 57.9% increase from the previous quarter and a 9% increase from the previous year. Its net loss narrowed to 4.995 billion yuan, narrowing by 26% from the previous quarter and 1% from the previous year. Its adjusted (non-GAAP) net loss narrowed to 4.127 billion yuan, narrowing by 34.3% from the previous quarter and 9% from the previous year. The company's gross profit margin was 10%, up 2.4 percentage points from the previous quarter and 0.3 percentage points from the previous year.
All data are improving. In the view of CEO Li Bin, NIO has entered a new cycle since the second quarter.
Looking ahead to the third quarter, NIO gave a confident performance guidance: it expects to deliver 87,000 to 91,000 units and its revenue is expected to be 21.81 billion to 22.88 billion yuan. Both guidances are record highs.
Its fourth-quarter goal has long been clear: achieving break-even. During the earnings call, Li Bin mentioned that NIO will strive to achieve monthly deliveries of 50,000 units in the fourth quarter of this year. This goal is almost on par with the current monthly sales volume of Leapmotor, the leading new energy vehicle manufacturer.
Li Bin: Sales growth in the third quarter will come from multi-brand strategy
Li Bin believes that starting from the third quarter, NIO's sales growth will come from the implementation of its multi-brand strategy, which will help increase its market share in various market segments. Demand for the Ledao L90 and the all-new ES8 has been strong, exceeding expectations.
During the earnings call, Li Bin revealed several times that the company's popularity estimates for the new models Ledao L90 and ES8 were "conservative."
He said that orders for the Ledao L90 exceeded expectations, reaching a record 10,575 units in the first month of delivery. "The hot sales of the Ledao L90 have boosted the Ledao brand's momentum and promoted demand for the L60. In August, L60 orders set a new high this year," he added.
Li Bin also stated that the all-new ES8 is "the most competitive model in the high-end large three-row SUV market," and has received widespread attention and high recognition. Pre-sales for the all-new ES8 have already begun, and deliveries will begin after the official launch on NIO Day in late September.
Therefore, how NIO's production capacity can support delivery has naturally become one of the focuses of analysts.
Li Bin responded to this by saying, "NIO is currently working with its supply chain partners to continue to increase production capacity to meet strong market demand as soon as possible."
He expects that the monthly production capacity of L90 will reach 15,000 units in October and ES8 will reach 15,000 units in December. "Taking into account the demand and supply situation this year, the company's goal is to achieve a monthly delivery volume of 50,000 units in the fourth quarter of this year."
This also means that NIO's delivery target in the fourth quarter is as high as 150,000 vehicles, nearly twice that of the second quarter.
NIO's fourth-quarter gross profit margin target: 16%-17%
NIO CFO Qu Yu said in the earnings call that both the Ledao L90 and the new ES8 will achieve full quarterly deliveries in the fourth quarter. By the fourth quarter of this year, the company's vehicle gross profit margin target is between 16% and 17% to achieve the break-even goal.
Li Bin also set a clear target for the company's future gross profit margin: 20%.
He broke down the 20% target, saying that the target gross profit margin for the NIO brand is 20%, and it will strive to reach 25% on this basis; the gross profit margin of the Ledao brand will be based on the 15% gross profit margin, and it will also strive to achieve a higher level; and the gross profit margin of Firefly is around 10%.
"The company has made sufficient preparations when defining its products and has provided strong cost support for aggressive pricing. NIO's new generation of products has sufficient cost competitiveness. This is based on the cost reduction capabilities achieved through long-term self-developed technology accumulation and cost control measures." Li Bin emphasized.
Sustained performance remains crucial to product support. Next year, NIO will launch two new large SUVs, the ES9 and ES7. Li Bin stated, "With the addition of the Ledao L80, the company will deliver three new large SUVs next year, further enhancing its product competitiveness."
Regarding the competitiveness of automotive products, Li Bin added that this depends on three capabilities: technical route, product planning, and product definition.
He stated frankly, "NIO has done an excellent job in technology and product planning, and has accumulated a wealth of experience and lessons in product definition. New-generation products like the Ledao L90 and the all-new ES8 have learned from many industry best practices and corrected some past mistakes. The Ledao L90 and the all-new ES8 have been well-received by the market thanks to their competitive product roadmap, sound product planning, and product definitions that meet the needs of Chinese users."
As of the close of the U.S. stock market on September 2, NIO closed up 3.37% at $6.595.
