Shanghai-based electric vehicle maker Nio is doubling down on its target of reaching profitability in the fourth quarter of this year, with founder and CEO William Li pointing to strong early demand for the newly launched Onvo L90 as a contributor to the goal.
The company stated last year it expected 2026 to be its first full year of profitability.
However, that timeline was brought forward after Chinese media reported earlier this year that Li had internally set a goal of achieving quarterly breakeven already in the final three months of 2025.
The management has since reiterated the target in previous media events and earnings calls.
Speaking at a media roundtable in Hangzhou on Friday, one day after the Onvo L90’s official launch, Li described the three-row electric SUV as a strategically important product for the company.
He said the model — which is available in 6 or 7-seater configurations — had received significant attention since its unveiling in early July, with both orders and public interest running high.
Earlier this Friday, the CEO delivered the very first L90 to customers at the Hangzhou Delivery Center.
According to Li, the L90 is expected to support steady and sustainable operations and help Nio return to profitability in the fourth quarter.
According to a message shared by the ‘Nio Beijing Club’, a user community of the automaker, the first batch of vehicles sold out in under three hours.
A social media user who attended the launch event, posting under the name Cnevhome, said Onvo had roughly 10,000 units in stock at the time.
In its first-quarter earnings call in early June, Nio’s management said breakeven in Q4 would require monthly sales of around 50,000 units across the three brands, gross margins of 17% to 18%, SG&A expenses equivalent to roughly 10% of revenue, and R&D spending between 6% and 7% of revenue.
“We will also manage the SG&A expenses in a very careful and prudent way carefully balancing the return and also the investments on all these campaigns and activities,” Li stated in the earnings call. “The target is to reduce the SG&A expenses quarter over quarter from Q2 this year.”
“And by Q4, considering the breakeven target as well, our target is to control our non-GAAP SG&A expenses to be within 10% of the sales revenue,” he added.
For the final quarter, Li said the company is targeting 25,000 monthly units for the Onvo brand and another 25,000 for the core Nio brand.
Li had also reiterated the fourth-quarter target in early July, citing improved operational execution, a more balanced product mix, and increased cost efficiency.
Li also used Friday’s event to repeat his long-held stance that fully electric vehicles represent the ultimate technological direction for the industry.
“From the perspective of the overall development of the automotive industry, the ultimate technological route for electric vehicles is pure electric — that is beyond dispute,” he said.
US-listed shares of Nio rose 7.98% to $4.87 on Thursday over investor optimism surrounding the L90 launch.
Nio, Onvo and Firefly will report their July delivery figures later this Friday.
