Written by Cláudio Afonso | LinkedIn | X
Nio reported Wednesday wider losses for the third quarter of the year while vehicle margins and gross margins improved.
The company’s gross margin increased both year over year and sequentially to 10.7%, while vehicle margin increased to 13.1% representing a 0.9 percentage point growth from the second quarter of the year an increase from 11% reported a year ago.
| Quarter | Vehicle Margin | Gross Margin |
| Q4 2023 | 11.9% | 7.5% |
| Q1 2024 | 9.2% | 4.9% |
| Q2 2024 | 12.2% | 9.7% |
| Q3 2024 | 13.1% | 10.7% |
Immediately after the release of the results, Nio shares are trading 4.3% lower at $4.43 during the pre-market trading session. Year to date, the stock has lost about 49% of its value.
Total revenue came at $2.66 billion, down 2% from a year ago while loss from operations increased 8.1% to $746.4 million and also sequentially from the $716.8 million reported in the second quarter.
| Quarter | Total Revenue | Loss from Operations |
| Q4 2023 | $ 2.41B | $ 933.2M |
| Q1 2024 | $ 1.37B | $ 747.1M |
| Q2 2024 | $ 2.401B | $ 716.8M |
| Q3 2024 | $ 2.661 B | $ 746.4 M |
The EV maker reported a net loss of $721 million, an increase of 11% from the same quarter of 2023.
For the fourth quarter, the company expects total revenue to be between 19,676 million yuan ($2.80 billion) and 20,383 million yuan ($2.90 billion), an increase of approximately 15.0% to 19.2% from the last quarter of 2023.
In a statement, Nio’s founder and chief executive William Li said the brand has “firmly secured the top position in China’s BEV market for vehicles priced over RMB 300,000.”
“In the third quarter of 2024, we achieved a record-breaking delivery of 61,855 smart electric vehicles. NIO brand has firmly secured the top position in China’s BEV market for vehicles priced over RMB 300,000, holding more than a 40% market share in the first three quarters of this year. Deliveries of the Onvo L60 have also commenced, with production capacity set to rapidly expand in the next few months. The Company’s total delivery volume for the fourth quarter is expected to reach a new record,” William Li stated.
“Nio’s executive flagship, the ET9, is in the final preparation stage of mass production. The ET9 embodies Nio’s full-stack technological expertise with cutting-edge global innovations, and its mass production will further solidify NIO’s positioning in the premium segment. In addition, firefly, a boutique brand positioned in the compact vehicle segment, will be unveiled at NIO Day 2024, further enriching our product portfolio and catering to a larger user base,” the founder and CEO added.
Between July and September, the EV maker delivered 61,855 vehicles—an 11.6% year-over-year increase—meeting the guidance of 61,000 to 63,000 units provided during the second-quarter earnings call.
Nio’s co-founder and president, Lihong Qin, has recently stated in a media interview that the company will prioritize its home market while reaffirming the goal initially set in 2021 that it “can expand to up to 25 different countries or regions by the end of next year.”
Lihong Qin announced last week that the electric vehicle manufacturer is gearing up to enter the Azerbaijani market with official communication confirming it on Friday.
The locations for its first showroom, known as Nio House, and its inaugural battery swap station will be situated in the main commercial area of Baku, the country’s capital.
The expansion follows Nio‘s recent entry into the Israeli market, where it began selling part of its lineup through local partner Delek Motors. The EV maker has recently launched in Israel through a partnership with Delek Motors, one of the country’s largest vehicle distributors.
Written by Cláudio Afonso | LinkedIn | X
