Andy FengArticle Thesis NIO Inc. (NYSE:NIO) reported solid quarterly earnings results, which sent NIO's shares soaring on Thursday. We will take a look at NIO's compelling growth in sales volumes and its margin trajectory. NIO's results have implications for other companies as well, such as automobile manufacturers from Europe and the US that face increasing competition from Chinese EV players. What Happened? NIO Inc. reported its quarterly earnings results for its fiscal Q2 on Thursday morning. The hea ...

Shares of NIO Inc. NIO may continue to rally. Some potentially bullish dynamics have appeared on the chart.Markets don't go in straight lines. They are more like a series of trading ranges that could look like a staircase. If the market is trending lower, what was the bottom of one trading range could become the top of the next range.If a market or a stock is trending lower, many investors and traders experience buyer's remorse. They buy a stock only to watch the price drop.Buyer's remorse can turn what was ...

The electric vehicle maker finally gave patient investors a solid reason to cheer.Nio (NIO 12.74%) stock had one of its best days in recent weeks today, flying 12% higher as of 12:40 p.m. ET Thursday.After losing more than 50% value in the first half of 2024, Nio stock looked primed to rebound on its next earnings report in anticipation of higher revenue and better margins. The company didn't disappoint, giving investors a chance to grab the electric vehicle (EV) stock today.Nio's deliveries and margins are ...

Financial Data and Key Metrics - Total revenue for Q2 2024 reached RMB17.4 billion, up 98.9% YoY and 76.1% QoQ [14] - Vehicle sales revenue was RMB15.7 billion, increasing 118.2% YoY and 87.1% QoQ, driven by higher deliveries [15] - Vehicle margin improved to 12.2% in Q2, up from 6.2% in Q2 2023 and 9.2% in Q1 2024, due to cost optimization and lower material costs [17] - Gross margin improved to 9.7%, compared to 1% in Q2 2023 and 4.9% in Q1 2024 [17] - Net loss decreased to RMB5 billion, down 16.7% YoY and 2.7% QoQ [18] Business Line Performance - NIO delivered 57,373 units in Q2, a 143.9% YoY increase, with monthly deliveries exceeding 20,000 units for four consecutive months [6] - The company expects Q3 deliveries to be between 61,000 and 63,000 units [7] - NIO's market share in China for BEVs priced above RMB300,000 exceeded 40% [6] - ONVO, the mass-market brand, will launch its first model, L60, in September 2024, with deliveries starting in late September [9] Market Performance - NIO has expanded its international presence, with the UAE website going live in August 2024 and product launches planned for Q4 2024 [11] - The company aims to make its charging network available in every county in mainland China by the first half of 2025 and expand the swapping network to over 2,300 counties by the end of 2025 [10] Strategic Direction and Industry Competition - NIO introduced SkyOS, a full-domain operating system, and Banyan 3.0, a smart system, enhancing its technological capabilities [7] - The company is focusing on cost optimization, supply chain efficiency, and expanding its user community to drive growth [6][7] - NIO plans to leverage its multi-brand strategy, including NIO, ONVO, and Firefly, to cover a wide price range from RMB140,000 to RMB800,000 [54] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of expanding the charging and swapping network to support sales growth and market reach [10] - The company is confident in its ability to maintain a strong market position in the premium EV segment, despite intense competition [52] - NIO aims to achieve a monthly delivery volume of 40,000 units for the NIO brand and a vehicle margin of 25% in the long term [27] Other Important Information - NIO has over 2,561 power swap stations globally and has completed over 52 million swaps [10] - The company has installed over 23,000 power chargers and destination chargers [10] - NIO's R&D expenses were RMB3.2 billion in Q2, down 3.8% YoY but up 12.4% QoQ due to increased design and development costs [17] Q&A Session Summary Question: ONVO L60 Pre-Orders and Supply Chain Preparation - The company is confident in the competitiveness of the L60 model, with pre-orders surpassing expectations [22] - NIO plans to achieve a supply capacity of 10,000 units by the end of 2024 and 20,000 units per month in 2025 [23] Question: NIO Brand Vehicle Sales and Margin Upside - NIO aims to improve vehicle margins to around 15% by the end of 2024, driven by cost optimization and product mix improvements [25] - The long-term target for the NIO brand is a monthly delivery volume of 40,000 units and a vehicle margin of 25% [27] Question: ONVO L60 Volume Target and SG&A Expenses - Most L60 deliveries in 2024 will occur in Q4, with monthly deliveries expected to reach 10,000 units by December [31] - SG&A expenses are expected to increase due to the launch of L60, but the company will optimize expenses relative to sales revenue [32] Question: ONVO L60 Gross Margin and Capacity Expansion - The L60 model is expected to achieve a 15% gross margin at scale, with production capacity supported by two factories and a third factory planned for Q3 2025 [36][37] Question: NOP Progress and Market Competition - NIO's NOP Plus is used by over 300,000 users, with cumulative mileage exceeding 1.1 billion kilometers [48] - The company is confident in its diversified product portfolio and technological advantages to counter market competition [52] Question: ET9 Launch and Overseas Expansion - The ET9 launch is on schedule for Q1 2025, with the model featuring advanced technologies like steer-by-wire and fully active suspension [59] - NIO's international expansion will focus on existing European markets and the UAE, with plans to introduce ONVO and Firefly products globally [60] Question: China EV Market Growth and Firefly Pipeline - The company expects the penetration rate of new energy vehicles in China to surpass 80% in the next 2-3 years [65] - Firefly will launch one or two models in 2025, with product preparation progressing smoothly [66] Question: SkyOS and Other Sales Gross Margin - SkyOS is a comprehensive operating system that enhances vehicle safety, stability, and R&D efficiency [70] - The company expects the profitability of other sales, including charging and battery swap services, to improve as the user base grows [72]

Key TakeawaysNio cut its losses as it set a record for vehicle deliveries in the second quarter.The Chinese EV maker's deliveries jumped 143.9% year-over-year, and vehicle sales surged 118.2%.Nio also gave a current-quarter revenue forecast that exceeded forecasts. American depositary receipts (ADRs) of Nio (NIO) advanced Thursday as the Chinese electric vehicle (EV) maker reduced its losses and gave strong guidance as it set a record for deliveries. Nio posted a second-quarter loss of 5.05 billion yuan ($6 ...

hapabapa NIO Inc. (NYSE:NIO) has posted solid Q2 earnings results, with robust performance in vehicle sales and gross margins underscoring an above-estimate Q3 outlook. The company has delivered more than 20,000 vehicles on a monthly basis for four consecutive months through August. And similar strength is expected in September, which has likely kicked off with a strong start. Specifically, new car insurance registrations from NIO totaled 6,000 for the week ending September 1. Based on 20,176 vehicle de ...

September 5 was scheduled for Nio‘s (NYSE: NIO) Q2 earnings report release before markets open in the U.S., and it brought some new records and a few pleasant surprises.Nio stock reacted positively to the news, as the gains of 2.17%, which set its price at $4.24 on September 4, were further bolstered by a 3.07% advancement in the pre-market trading.NIO stock 5-day price chart. Source: FinboldThe Q2 report revealed that Nio reported adjusted earnings per share (EPS) of $0.30, slightly better than the estimat ...

NIO Inc. Reports Unaudited Second Quarter 2024 Financial Results 09/5/2024 Quarterly Total Revenues reached RMB17,446.0 million (US$2,400.6 million)i Quarterly Vehicle Deliveries were 57,373 units SHANGHAI, Sept. 05, 2024 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) ("NIO" or the "Company"), a pioneer and a leading company in the global smart electric vehicle market, today announced its unaudited financial results for the second quarter ended June 30, 2024. Operating Highlights for the Sec ...

Quarterly Total Revenues reached RMB17,446.0 million (US$2,400.6 million)iQuarterly Vehicle Deliveries were 57,373 units SHANGHAI, Sept. 05, 2024 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the global smart electric vehicle market, today announced its unaudited financial results for the second quarter ended June 30, 2024. Operating Highlights for the Second Quarter of 2024 Vehicle deliveries were 57,373 in the second quarter of ...

Wall Street expects Nio Inc NIO to report a negative 31 cents in earnings per share (EPS) and $2.44 billion in revenues when the Chinese electric vehicle manufacturer reports second-quarter earnings before market hours on Thursday.Nio saw impressive year-over-year growth with a 35.8% increase in vehicle deliveries for 2024, reaching 128,100 units. The company delivered 20,176 vehicles in August. Nio’s total deliveries have now climbed to 577,694 vehicles as of August end, highlighting the company’s growing ...