Nio Projects Strong Q2 Deliveries and Revenue Growth

On Thursday, Chinese electric vehicle (EV) maker Nio declared that it expects its deliveries in the second quarter to more than double from a year earlier, projecting between 54,000 and 56,000 units.

The company anticipates nearly doubling its revenue to approximately $2.3 billion for the three months starting in April.

Financial Performance and Market Position by Nio:

Despite the growth in deliveries and revenue, Nio has yet to profit. It reported a net loss of $718 million for the first quarter, slightly improving from $772 million in the 4th quarter of 2023.

Ranked eighth in EV sales in China, Nio saw a rebound in deliveries of its EVs, priced starting from $4,000, to over 20,000 units in May. This increase followed a reduced fee for a battery rental scheme, which has encouraged more sales.

Strategy Amidst Competition:

Like many of its competitors, Nio is broadening its customer base and boosting sales through cheaper models amid intense price competition in China.

The company has also taken measures to improve its financial performance by trimming its workforce and deferring long-term projects that would not contribute financially within three years.

Expansion and Production Capacity:

Nio has received approval to build a third factory in China. This will increase its total approved production capacity to 1 million cars, almost on par with Tesla’s massive Shanghai plant.

The new F3 plant in Huainan City, Anhui province, will primarily produce vehicles for Nio’s newly launched affordable car brand, Onvo.

In May, Nio unveiled the Onvo L60 SUV, starting at 219,900 yuan ($30,300). This is competitively priced compared to Tesla’s Model Y, which starts at 249,900 yuan in China.