NIO Inc (NIO) Q4 2024 Earnings Call Highlights: Record Deliveries and Strategic Expansion ...

In This Article:

  • Total Revenues: RMB19.7 billion, up 15.2% year over year and 5.5% quarter over quarter.

  • Vehicle Sales: RMB17.5 billion, increased 13.2% year over year and 4.7% quarter over quarter.

  • Other Sales: RMB2.2 billion, grew by 33.8% year over year and 12.7% quarter over quarter.

  • Vehicle Margin: 13.1%, compared to 11.9% in Q4 last year.

  • Overall Gross Margin: 11.7%, up from 7.5% in Q4 last year.

  • R&D Expenses: RMB3.6 billion, decreased 8.5% year over year.

  • SG&A Expenses: RMB4.9 billion, up 22.8% year over year.

  • Loss from Operations: RMB6 billion, down 8.9% year over year.

  • Net Loss: RMB7.1 billion, increased 32.5% year over year.

  • Cash and Cash Equivalents: RMB41.9 billion at the end of the quarter.

Release Date: March 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • NIO Inc (NYSE:NIO) set a new quarterly record with 72,689 smart EV deliveries in Q4 2024, marking a 38.7% increase year over year.

  • The NIO brand secured a 40% market share in China's BEV segment priced above RMB300,000, leading the premium segment.

  • NIO's vehicle margin improved to 14.9% in Q4, with overall vehicle margin reaching 13.1%, driven by supply chain optimization and cost control.

  • The company launched the NIO ET9, a flagship smart executive sedan, which sold out its first edition of 999 units within hours.

  • NIO's global expansion is supported by 183 NIO Houses, 462 NIO Spaces, and 3,245 post-op stations worldwide, enhancing its competitive edge in the BEV market.

Negative Points

  • NIO Inc (NYSE:NIO) reported a net loss of RMB7.1 billion in Q4 2024, an increase of 32.5% year over year and 40.6% quarter over quarter.

  • The ONVO brand's sales performance did not meet expectations, with brand awareness and sales network maturity cited as challenges.

  • Q1 2025 vehicle margin is expected to be under pressure due to seasonality and product transitions, impacting profitability.

  • Operating expenses increased, with SG&A expenses up 22.8% year over year, driven by sales and marketing for new brands and products.

  • Interest and investment loss amounted to RMB0.2 billion, primarily due to fair value changes in equity investments.

Q & A Highlights

Q: What cost reduction efforts is NIO implementing, and when will these efforts reflect in financial results? A: Bin Li, CEO, explained that NIO has initiated cost reduction efforts since last year, focusing on supply chain and R&D. These efforts have already improved vehicle margins in Q4 2024. Starting Q1 2025, NIO launched a comprehensive cost reduction initiative involving all employees, which is expected to reflect in financial results from Q2 2025 onwards. The company aims to achieve breakeven by Q4 2025.