Nio Onvo will formally launch the L60 on September 19, with a price slightly lower than the pre-sale price of RMB 219,900. Construction of the F3 plant has already begun, with production set to start in the third quarter of next year.
Nio (NYSE: NIO) today reported better-than-expected second-quarter earnings and then held an analyst call.
Here's what CnEVPost has summarized from the call, with the latest at the top.
If each of Nio's battery swap stations provides 60 services per day and charges a fee comparable to the cost of supercharging, then the business will break even.
Currently Nio has more than 2,500 battery swap stations, with an average of 30-40 services per day per station.
Nio will begin deliveries of the first Firefly model in 2025, and product preparations are going very well so far.
China's new energy vehicle (NEV) penetration rate may exceed 80 percent in about 2 years.
By next year, Nio will have products that are better suited for global expansion, including Onvo and another brand codenamed Firefly.
Nio aims to improve the efficiency of Onvo stores, and the average renovation cost for each of the stores that are currently open does not exceed RMB 1 million. For the next 100 Onvo stores, the renovation costs will be even lower.
Nio's F2 plant has already started double-shift production. The F3 plant has begun construction and will go into production in the third quarter of next year.
By the third quarter of next year, Nio will have at least three factories that will be able to guarantee production needs.
Company-wide, Nio's growth strategy is very clear. In terms of price band coverage, Nio will have 3 brands covering the range of RMB 140,000 to RMB 800,000. If the BaaS battery rental model is taken into account, the price range is RMB 100,000 to RMB 700,000.
The long-term goals for the Nio brand are 40,000 sales per month and a 25 percent gross margin.
Onvo is targeting a market with annual sales of 8 million units or more, with a higher volume cap. A gross margin of 15 percent is a reasonable target for Onvo in the long run.
Nio hopes to get vehicle margin to the 15 percent level in the fourth quarter.
For the Onvo L60 supply chain, Nio is currently preparing for 10,000 deliveries in December, with a target of 20,000 deliveries during the year.
Nio hopes that the Onvo L60 will reach 20,000 units delivered in a single month sometime in 2025.
For sales and services, as of now, the Nio brand has 161 Nio Houses and 408 Nio Spaces, as well as 351 service centers and 63 delivery centers.
The Onvo brand has already opened 105 stores in 55 cities, and will have over 200 stores by the year end.
As for market development, Nio is accelerating the international expansion. On August 20, NIO's UAE website went live. And in Q4, the products will be launched and delivered in UAE.
While ensuring controllable investment and efficient operations, Nio will also actively evaluate opportunities worldwide, introducing products to more markets.
On September 19, Nio's family-centric mass-market brand Onvo is going to celebrate the launch of its first model, L60. And the user delivery will start in late September.
The Onvo L60 has a pre-sale price of RMB 219,900, and will be slightly lower at the official launch.
With strong confidence in this all-around product, Nio will spare no efforts in ramping up production and fulfilling the market demand.
Highlights from Nio's second-quarter earnings report:
Revenue came in at RMB 17.446 billion ($2.4 billion), better than analysts' expectations of RMB 17.385 billion. That's up 98.89 percent year-on-year and up 76.07 percent from the first quarter.
Net loss was RMB 5.05 billion, down 16.7 percent year-on-year and down 2.7 percent from the first quarter.
Gross margin was 9.7 percent, higher than analysts' expectations of 8.736 percent and the highest since the third quarter of 2022.
Vehicle margin was 12.2 percent, compared with 6.2 percent in the second quarter of 2023 and 9.2 percent in the first quarter of 2024.
Nio posts better-than-expected Q2 earnings as deliveries hit record high
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