March 21, 2025 – Shanghai, China – NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO), the Chinese smart electric vehicle (EV) manufacturer, reported strong revenue growth in its Q4 2024 financial results, driven by higher vehicle deliveries and improved gross margins. However, the company’s net losses widened significantly, reflecting ongoing operational challenges.
Q4 2024: Strong Revenue and Delivery Growth
NIO’s total revenue for Q4 2024 reached RMB19.7 billion ($2.74 billion), marking a 15.2% year-over-year (YoY) increase and a 5.5% rise from Q3 2024.
- Vehicle sales contributed RMB17.5 billion, up 13.2% YoY and 4.7% quarter-over-quarter, fueled by higher delivery volumes.
- The company delivered 72,689 vehicles in the quarter, a 45.2% surge from Q4 2023 and a 17.5% increase from Q3 2024.
- This included 52,760 premium NIO-branded vehicles and 19,929 family-oriented ONVO-branded vehicles.
Profitability Improves Despite Rising Losses
NIO’s gross profit climbed to RMB2.3 billion in Q4, marking an 80.5% YoY jump and a 15% increase from the previous quarter.
- Gross margin improved to 11.7%, up from 7.5% in Q4 2023 and 10.7% in Q3 2024, driven by:
- Higher vehicle margins due to lower material costs.
- Increased revenue from technical R&D services and aftermarket sales.
- Reduced losses from power solutions.
- Vehicle margin rose to 13.1%, up from 11.9% a year earlier, though flat compared to the previous quarter.
Mounting Net Losses
Despite the improved revenue and margins, NIO reported a net loss of RMB7.1 billion ($985 million) for Q4 2024—32.5% higher than Q4 2023 and 40.6% larger than Q3 2024.
- Excluding share-based compensation expenses, the adjusted net loss (non-GAAP) stood at RMB6.6 billion, marking a 37.9% YoY increase.
- The widening losses reflect higher operating expenses and ongoing investments in R&D and marketing as the company scales its operations.
Full-Year 2024 Performance
For the full year, NIO posted:
- Total revenues of RMB65.7 billion ($9.1 billion), up 18.2% YoY.
- Vehicle sales of RMB58.2 billion, reflecting the same 18.2% growth rate.
- 221,970 vehicle deliveries, a 38.7% increase from 2023.
- Gross profit more than doubled to RMB6.5 billion, with gross margin expanding to 9.9%, up from 5.5% in 2023.
- Vehicle margin for the year climbed to 12.3%, compared to 9.5% in 2023.
Financial Strength and 2025 Outlook
As of December 31, 2024, NIO held RMB41.9 billion in cash, restricted cash, short-term investments, and long-term time deposits, providing the company with solid liquidity to fund future growth initiatives.
Looking ahead, NIO projects:
- Vehicle deliveries of 41,000 to 43,000 units in Q1 2025, representing a 36.4% to 43.1% YoY increase.
- Total revenue guidance between RMB12.4 billion and RMB12.9 billion ($1.7 billion to $1.8 billion), reflecting 24.8% to 29.8% YoY growth.
Key Takeaway: Expansion Amid Losses
While NIO’s delivery and revenue growth highlight its expanding market presence, the company’s widening losses underscore the financial strain from its ambitious expansion plans. With stronger vehicle margins and a robust cash position, NIO is positioning itself for continued growth in 2025, but profitability remains a challenge as it balances scale with cost management.
