NIO has reported better-than-expected financial results for Q2 2024, showcasing record-high deliveries and significant revenue growth despite challenges in the competitive electric vehicle (EV) market. 

NIO achieved a new quarterly record with 57,373 EV deliveries in Q2 2024, representing a massive 143.9% increase year-over-year and a 90.9% increase from Q1 2024. This performance exceeded the company’s initial projections of 54,000 to 56,000 units for the quarter. 

As a result, the strong delivery numbers translated into impressive financial results. With total revenue, NIO reached RMB 17.446 billion ($2.4 billion), slightly surpassing analysts’ expectations of RMB 17.385 billion. As for vehicle sales revenue, the company hit RMB 15.68 billion ($2.16 billion), up 118.2% year-over-year and 87.1% quarter-over-quarter.

Moreover, NIO reported significant improvements in its profit margins including its gross margin rose to 9.7%, the highest since Q3 2022 and above analysts’ expectations of 8.736%. Also, its vehicle margin increased to 12.2%, up from 6.2% in Q2 2023 and 9.2% in Q1 2024.

While still operating at a loss, NIO showed progress in reducing its deficit. Its net loss for Q2 was RMB 5.05 billion, it went down 16.7% year-over-year and 2.7% from Q1 2024. In addition, adjusted net loss (excluding share-based compensation) was RMB 4.54 billion, better than analysts’ expectations of RMB 4.9 billion.

Notably, NIO provided optimistic guidance for Q3 2024 with expected deliveries between 61,000 and 63,000 units, representing 10% to 13.7% year-over-year growth. Projected revenue between RMB 19.11 billion and RMB 19.67 billion, a 0.2% to 3.2% increase year-over-year.

NIO is pursuing several strategies to maintain its growth and improve profitability. These strategies include expanding its product line with the introduction of the mass-market ONVO brand, continuing investment in battery-swapping technology and charging infrastructure, and maintaining high R&D spending, with a planned quarterly expense of around RMB 3 billion.

Despite the positive results, NIO still faces challenges in an intense price war in the Chinese EV market. Nevertheless, William Li, NIO’s founder, chairman, and CEO, expressed confidence in the company’s trajectory stating, “NIO’s core competitive advantages in technology, product, service, and community are earning increasing recognition from users, driving continued strong vehicle sales performance.”

As NIO continues to navigate the competitive EV landscape, its record-breaking Q2 performance and strategic initiatives position the company as a significant player in the global EV market.

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