Core Insights - NIO Inc. reported a total of 24,925 vehicle deliveries in June, marking a year-over-year growth of 17.5%. For Q2, the company delivered 72,056 vehicles, which is a 25.6% increase compared to the same quarter last year and within the company's guidance range [1][9]. Delivery Performance - In Q2, NIO's namesake brand sold 47,132 cars, reflecting an approximate decline of 18% from the same quarter in 2024. The ONVO brand delivered 17,081 units, while Firefly delivered 7,843 units [2]. - The ONVO and Firefly brands have diversified NIO's product portfolio, contributing to sales momentum, but this growth appears to be at the expense of the core NIO brand [3]. Year-to-Date Performance - In the first half of 2025, NIO sold 114,150 vehicles, representing an increase of over 30% from the previous year. However, this growth is insufficient to meet the company's ambitious target of doubling sales to 330,000 vehicles in 2025 [4][5]. Competitive Landscape - Li Auto delivered 36,279 units in June and 111,074 vehicles in Q2 2025, with a modest growth rate of 2.3%. XPeng Inc. delivered 34,611 smart EVs in June, achieving a remarkable 224% year-over-year increase and setting a new quarterly record with 103,181 cars sold in Q2 [6][7]. Stock Performance - NIO's shares have declined approximately 19% year-to-date, compared to an 8% decline in the broader industry [8]. Valuation Metrics - NIO currently trades at a forward price-to-sales ratio of 0.45 and holds a Value Score of D, indicating potential concerns regarding its valuation [10].

Core Insights - NIO Inc. delivered 23,231 vehicles in May, reflecting a year-over-year increase of 13.1%, but a decline from April's 23,900 units, with May's growth rate significantly lower than April's 53% increase [1][9] Delivery Performance - The NIO brand's deliveries fell 31% month-over-month to 13,270 units, raising concerns as this includes the company's core premium offerings [2][9] - ONVO, NIO's mass-market brand, delivered 6,281 units, marking a 42% increase from April, while Firefly, the smaller premium brand, delivered 3,680 units, a significant rise from just 230 in April [3][4] Brand Portfolio Management - The growth of ONVO and Firefly appears to be at the expense of the NIO brand, indicating potential challenges in managing and balancing the brand portfolio effectively [4] Sales Goals and Year-to-Date Performance - NIO aims to double its sales by 2025 from 221,970 units delivered last year, requiring a monthly average of 37,000 deliveries. However, year-to-date deliveries of 89,225 units are 34.7% higher year-over-year but still fall short of the target pace [5][9] Competitive Landscape - Li Auto delivered 40,856 units in May, a 16.7% year-over-year increase, outperforming NIO in both year-over-year and month-over-month growth [6] - XPeng Inc. delivered 33,525 units, a remarkable 230% increase year-over-year, although it saw a decline from April's 35,045 units [7] Stock Performance - NIO shares have declined approximately 19% year-to-date, contrasting with the industry's slight decline of 0.5% [8]

Company Performance - Li Auto delivered 40,856 vehicles in May 2025, marking a year-over-year increase of 16.7% [1] - Cumulative deliveries reached 1,301,531 as of May 31, 2025 [1] Product Development - The company completed a comprehensive upgrade of its entire model lineup, with the new Li MEGA Home deliveries starting in late May [2] - The Li L series features significant enhancements, including dual-chamber air suspension and industry-leading safety capabilities with standard all-weather LiDAR [2] Technological Advancements - Li Auto rolled out OTA update version 7.4, enhancing the smart assistant Li Xiang Tong Xue with new animated avatars and improved intelligence [3] - The company plans to complete the deployment of its 2,500th super charging station in June, ahead of the launch of its first battery electric SUV, Li i8, in July [3] Infrastructure Expansion - As of May 31, 2025, Li Auto operated 506 retail stores in 152 cities and 502 servicing centers across 222 cities [4] - The company had 2,414 super charging stations in operation, equipped with 13,195 charging stalls in China [4] Company Overview - Li Auto is a leader in China's new energy vehicle market, focusing on premium smart electric vehicles and extended-range electric vehicles [5] - The current model lineup includes Li MEGA, Li L9, Li L8, Li L7, and Li L6, with plans for further expansion to target a broader user base [5]

Core Viewpoint - Li Auto Inc. reported its financial results for the first quarter of 2025, highlighting a year-over-year increase in vehicle deliveries and total revenues, despite a significant decline compared to the previous quarter. Financial Highlights - Total revenues reached RMB25.9 billion (US$3.6 billion), a 1.1% increase from RMB25.6 billion in Q1 2024, but a 41.4% decrease from RMB44.3 billion in Q4 2024 [4][12][23] - Vehicle sales amounted to RMB24.7 billion (US$3.4 billion), reflecting a 1.8% increase from RMB24.3 billion in Q1 2024, and a 42.1% decrease from RMB42.6 billion in Q4 2024 [4][12][23] - Gross profit was RMB5.3 billion (US$732.9 million), a slight increase of 0.6% from RMB5.3 billion in Q1 2024, but down 40.7% from RMB9.0 billion in Q4 2024 [4][12][23] - Net income was RMB646.6 million (US$89.1 million), up 9.4% from RMB591.1 million in Q1 2024, but down 81.7% from RMB3.5 billion in Q4 2024 [4][12][23] Operational Highlights - The company delivered 92,864 vehicles in Q1 2025, marking a 15.5% year-over-year increase [2][4] - As of March 31, 2025, Li Auto operated 500 retail stores in 150 cities, 502 servicing centers, and 2,045 supercharging stations with 11,038 charging stalls [3][4] Recent Developments - In April 2025, the company delivered 33,939 vehicles, representing a 31.6% increase from April 2024 [6] - The company launched new models including Li MEGA Home, which features advanced seating and assisted driving systems [8] - Li Auto became the first automaker to open-source its smart vehicle operating system, Li Halo OS, to encourage collaboration in the industry [9] Business Outlook - For Q2 2025, the company expects vehicle deliveries between 123,000 and 128,000, indicating a year-over-year increase of 13.3% to 17.9% [21][23] - Total revenues are projected to be between RMB32.5 billion (US$4.5 billion) and RMB33.8 billion (US$4.7 billion), reflecting a year-over-year increase of 2.5% to 6.7% [21][23]

Delivery Results - NIO delivered 23,900 vehicles in April 2025, reflecting a 53% year-over-year growth, with cumulative deliveries reaching 737,558 units as of April 30, 2025 [2] - XPeng reported 35,045 smart EV deliveries in April 2025, marking a 273% year-over-year increase, and cumulative deliveries for the first four months of 2025 totaled 129,053 units, up 313% compared to the same period last year [3] - LI Auto delivered 33,939 vehicles in April 2025, representing a 31.6% year-over-year growth, with total deliveries for the first four months of 2025 amounting to 1,260,675 units [5] Product Launches and Innovations - NIO's new small smart high-end electric car brand, Firefly, began deliveries in late April 2025, launched on April 19, 2025 [2] - XPeng launched its ADAS insurance service in China on April 28, 2025, providing additional coverage for its models when the NGP system is in operation [4] - LI Auto introduced new models including Li MEGA Home, Li MEGA Ultra, and Li L6 [5] Market Performance - XPeng's shares have increased by 106.1% over the past year, while NIO and LI Auto's shares have decreased by 29.4% and 12.3%, respectively [6] - NIO and XPeng currently hold a Zacks Rank of 3 (Hold), while LI Auto has a Zacks Rank of 4 (Sell) [8]