On November 20, NIO (NIO.NYSE; 9866.HK) released its latest financial report, which revealed that the company’s total revenue for the third quarter of 2024 was 18.67 billion yuan, a year-on-year decline of 2.1% but a quarter-on-quarter increase of 7.0%. The net loss stood at 5.06 billion yuan, representing an 11.0% increase from the previous year and a 0.3% rise from the last quarter.
NIO vehicles in Shanghai on November 10, 2024.
In the third quarter, NIO delivered a total of 61,855 new cars, setting a new record for delivery volume. However, the company’s revenue did not see a corresponding increase, and its significant losses remain problematic, with an average monthly net loss of 1.67 billion yuan, one of the highest among new car manufacturers, continuing the trend of increasing sales coinciding with growing losses.
During the earnings call on November 20 for NIO’s Q3 2024 financial report, Chairman Li Bin stated that while sales of NIO vehicles did experience a decline in October, this was part of a proactive adjustment strategy. “We recognized the significant pressure on gross margins, and maintaining an improvement in NIO’s gross margin is a core objective. Therefore, in October we reduced some promotional expenditures, which did have a certain impact on sales, but this was all anticipated,” he said.
NIO's management also indicated that the company aims to achieve a gross margin of 15% in 2025, with a target to increase it to 20%. The financial report noted that NIO’s gross margin for complete vehicles in the third quarter of this year was 13.1%.
