NIO Reports Record Q2 2024 Deliveries and Improved Margins, Sets Positive Outlook for Q3

NIO, a leading Chinese electric vehicle (EV) maker, released its Q2 2024 earnings report, highlighting significant growth in deliveries and improvements in financial metrics.

Key Earnings Highlights:
– Adjusted EPS: -$0.30 (versus estimates of -$0.31)
– Revenue: $2.4 billion (slightly below the estimated $2.44 billion); representing a +98.9% year-over-year (YoY) increase

Q3 2024 Guidance:
– Revenue forecast: $2.63 billion to $2.71 billion (estimates stood at $2.54 billion)
– Vehicle deliveries: 61,000 to 63,000 units; reflecting an increase of +10% to +13.7% YoY

Q2 2024 Financial Performance:
– Gross Profit: $232.4 million; a remarkable +1,841.0% YoY growth
– Gross Margin: 9.7% (compared to 1.0% YoY)
– Vehicle Margin: 12.2% (up from 6.2% YoY)
– Net Loss: $694.4 million; reduced by 16.7% YoY
– Adjusted Net Loss (Non-GAAP): $624.1 million; down 16.7% YoY
– Cash and Cash Equivalents: $5.7 billion

Vehicle Sales Performance:

– Vehicle Sales: $2.16 billion; an impressive +118.2% YoY growth

– Vehicle Deliveries: 57,373 units; up +143.9% YoY

– Premium Smart Electric SUVs: 32,562 units

– Premium Smart Electric Sedans: 24,811 units

Operating Metrics:

– Vehicle Margin: 12.2% (up from 6.2% YoY and 9.2% QoQ)

– Gross Margin: 9.7% (up from 1.0% YoY and 4.9% QoQ)

Recent Developments:

– NIO recorded 57,373 vehicle deliveries in Q2 2024, capturing over 40% of China’s premium BEV market priced above RMB 300,000.

– The company is further expanding its charging and battery-swapping network under its “Power Up Counties” plan.

– ONVO Brand: Launched the L60 model and opened 105 stores to expand brand presence.

CEO Commentary:

William Bin Li, NIO’s CEO, highlighted that NIO achieved record-breaking deliveries in Q2 2024, securing 40% market share in the premium BEV segment in China. He noted that the company’s strength in technology, products, services, and community continues to drive strong vehicle sales. He also emphasized that NIO expects to set another record for deliveries in Q3, further solidifying its market position.

CFO Commentary:

CFO Stanley Yu Qu emphasized that ongoing cost optimizations had improved the vehicle gross margin to 12.2%. NIO plans to focus on R&D and infrastructure investments while adopting flexible market strategies. Qu remains confident in achieving steady improvements in gross profit and cost efficiency in the future.

NIO’s Q2 performance showcases its strong trajectory in the EV market, with robust delivery numbers and financial improvements, positioning the company for continued growth in the coming quarters.