NIO (NIO) Q2 2024 earnings summary

Executive summary

• Q2 2024 deliveries reached a record 57,373 units, up 143.9% year-over-year and 90.9% sequentially, with strong order intake and growth in both SUVs and sedans.

• NIO's market share among BEVs in China exceeded 40% for models priced above RMB 300,000.

• Launched ONVO brand, with L60 model set for imminent delivery, targeting the mass market.

• Launch of new technologies, including SkyOS operating system and in-house developed smart driving chip, with further product launches and international expansion planned.

Financial highlights

• Total revenue was RMB 17.4 billion, up 98.9% year-over-year and 76.1% quarter-over-quarter.

• Vehicle sales revenue reached RMB 15.7 billion, up 118.2% year-over-year and 87.1% quarter-over-quarter.

• Vehicle margin improved to 12.2% from 6.2% a year ago and 9.2% last quarter; overall gross margin rose to 9.7% from 1% last year and 4.9% last quarter.

• Net loss was RMB 5.05 billion, a 16.7% decrease year-over-year and 2.7% decrease quarter-over-quarter; adjusted net loss was RMB 4.54 billion.

• Cash and equivalents totaled RMB 41.6 billion as of June 30, 2024.

Outlook and guidance

• Q3 2024 deliveries expected between 61,000 and 63,000 units, up 10.0% to 13.7% year-over-year.

• Q3 2024 total revenues projected between RMB 19,109 million and RMB 19,669 million.

• Targeting monthly delivery of 10,000 ONVO L60 units by December, with supply capacity ramping to 20,000 units per month next year.

• Long-term operational target for NIO brand: 40,000 units/month at 25% vehicle margin; ONVO brand: >15% vehicle margin.

• L60 model expected to achieve 15% vehicle margin at scale.