Nio is confident of doubling sales next year and aims to be profitable by 2026. The third brand is officially named Firefly and its first model will begin deliveries in the first half of 2025.
Nio (NYSE: NIO) today announced its third quarter 2024 financial results and held an analyst call afterwards.
Below are live updated key takeaways from the call, with the most recent at the top.
Nio will maintain its 2024 R&D investment scale in 2025, or about RMB 3 billion per quarter.
Nio will use some of the ET9's technology in some of its subsequent models.
Onvo currently has about 190 stores, which is low compared to Tesla and Li Auto. More Onvo stores will open next to boost sales capacity. The company is confident about the demand for Onvo L60.
For Nio Inc's efforts to expand into the global market, Onvo and Firefly will take on a larger role.
The Nio brand is at the premium segment of the market, which in Europe is about the same price as Porsche when tariffs are taken into account, which leads to a limited market size.
Nio Inc will maintain its long-term commitment to overseas markets, but will prioritize Onvo and Firefly for global market entry.
The construction of the sales and service systems will bring short-term pressure, but losses are expected to continue to narrow. For the company as a whole, Nio is targeting full-year profitability by 2026.
Nio aims to gradually improve its cost structure and realize cost savings as volumes increase.
In 2025, losses are expected to narrow gradually as Nio's sales grow and operations improve.
Nio aims to make human-vehicle co-driving 10 times safer than driving by human drivers by next year.
The Nio brand's models will gradually switch to a new generation platform next year and the company will enter a new product cycle, the first of which will be the ET9.
Nio will have new models on the market as well as facelifts of existing models. In 2025 and 2026, Nio Inc will have basically completed switching and upgrading all its products.
Nio is confident that the company will see sales double next year.
Onvo will launch two SUVs next year, including a six- or seven-seater and a big five-seater to complete its presence in the SUV market.
These two models -- benchmarked against the Li Auto's Li L8 and Li L7 -- are very competitive and keep costs well in check.
In 2024, the Onvo L60 is in a capacity ramp-up phase and offers a lot of entitlements to customers, resulting in a relatively low overall gross margin.
As capacity and deliveries grow, Nio is targeting a 10 percent gross margin benchmark for the Onvo brand this year and gradually reaching 15 percent next year.
Currently Nio is pricing globally based on costs, and vehicle prices in Europe went up after additional EU tariffs came into effect. Norway is not affected by the EU tariffs, a few other markets are affected, but the impact on the company as a whole is not significant.
Nio's current focus in Europe is on establishing sales and service systems and understanding the needs of local customers.
Over the past few years, Nio has not prioritized sales in Europe, but has kept its investment at a reasonable level.
Onvo currently has about 190 stores and aims to reach 300 by the end of the year.
Nio House Abu Dhabi, Nio's first store in the MENA market, will officially open on November 28. Nio is currently conducting sales and deliveries in the region.
Starting next year, Nio will accelerate its entry into more markets around the world with the delivery of Onvo and Firefly branded products.
Nio will enter a new product cycle in 2025 with new product deliveries under the Onvo and Firefly brands and the company will enter a faster growth phase.
Nio's third brand is officially named Firefly and will be launched at Nio Day 2024 on December 21. Its first model will have the same name as the brand, also Firefly, and will begin deliveries in the first half of 2025.
Firefly will target the boutique compact car market and is expected to further enrich Nio Inc's product portfolio and will be sold through existing sales channels.
The decrease in deliveries of the Nio brand in October was the result of proactive actions, as a result of the narrowing of the incentives by about RMB 15,000.
Nio's earnings call began with William Li, Nio's founder, chairman, and CEO, starting its prepared presentation.
The model is positioned as a boutique small car and supports Nio's battery swap mode.
Nio posts lower-than-expected Q3 revenue, gross margin improves
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