NIO Inc. (NYSE: NIO) reported its fourth-quarter and full-year 2024 earnings with mixed results, missing Wall Street expectations on earnings per share (EPS), but delivering record-breaking vehicle deliveries and expanding its product lineup.
The company announced a Q4 EPS of -$0.47, significantly wider than the analyst forecast of -$0.33, raising concerns over profitability despite robust revenue growth. Following the disappointing earnings report, NIO’s stock dipped in after-hours trading, as investors processed the widening losses despite the company’s aggressive expansion efforts.
Strong Delivery Growth and Market Expansion
Despite missing earnings estimates, NIO achieved record quarterly deliveries, reflecting growing consumer demand for its electric vehicles (EVs).
- In Q4 2024, NIO delivered 72,689 Smart EVs, marking a 38.7% year-over-year increase.
- December 2024 saw a monthly record of 30,000+ deliveries, highlighting strong momentum heading into 2025.
- For the full year, NIO delivered 221,970 vehicles, securing a 40% market share in China’s BEV segment priced above RMB 300,000.
The company’s mainstream brand, ONVO, also showed promising growth. The ONVO L60 SUV has gained traction in China’s BEV SUV market priced between RMB 200,000 and RMB 300,000, ranking among the top three in the category.
Profitability Improves Despite Widening Losses
While NIO’s EPS came in below expectations, the company demonstrated improvements in vehicle margins.
- Q4 vehicle margin increased to 14.9%, supported by supply chain optimization and cost controls.
- ONVO, despite being in its early production run, achieved a positive vehicle margin, boosting the overall vehicle margin to 13.1% in Q4.
- After-sales services and technology revenue also contributed to a positive gross margin in other sales, helping offset some losses.
Expanding Product Portfolio with Three Brands
NIO’s multi-brand strategy is taking shape, with three distinct brands targeting different market segments:
- NIO (Premium Brand): At NIO Day in December, the company launched its flagship executive sedan, NIO 89, featuring cutting-edge technology and luxury features. The first edition of 999 units sold out within hours, and the signature version continues to see strong demand. Deliveries will begin at the end of March 2025.
- ONVO (Mass Market Brand):
- The L60 SUV continues to gain market share, while the company plans to launch the L90, a large family SUV, in Q2 2025, with deliveries starting in Q3.
- A third ONVO SUV is slated for Q4 2025, completing a diverse SUV lineup to appeal to a broader range of consumers.
- Firefly (High-End Small Car Brand):
- Since its debut in December 2024, Firefly has generated significant interest, especially among young buyers and families seeking a second vehicle.
- Deliveries are scheduled to begin in April 2025, leveraging NIO’s extensive sales network for rapid expansion.
Technological Advancements: AI-Powered Smart Driving
NIO is doubling down on AI-powered smart driving technology, with a focus on enhancing safety and driving experiences.
- The company’s AI-based Automatic Emergency Steering (AES) technology has already prevented over 3.4 million potential accidents, with ongoing upgrades to further enhance safety.
- NIO is also transitioning to its next-gen architecture based on the NIO World Model (NVM), offering driving, parking, and safety assistance across all scenarios.
- An early access program will launch in April 2025, with a gradual mass rollout planned throughout the year.
Global Expansion and Charging Infrastructure Growth
NIO is rapidly expanding its global footprint with a growing sales and service network.
- The company now operates 183 NIO Houses and 462 NIO Spaces, while ONVO has 449 stores across China.
- To support its growing customer base, NIO runs 388 service centers and 64 delivery centers.
- The company has deployed 3,245 power swap stations worldwide, including 970 highway stations in China, performing over 69 million battery swaps to date.
Outlook for Q1 2025: Strong Growth Despite Seasonality
Despite the Chinese New Year holiday and seasonal factors, NIO expects to deliver between 41,000 and 43,000 vehicles in Q1 2025, reflecting 36% to 43% year-over-year growth.
Investor Takeaway: Mixed Signals for NIO Stock
NIO’s Q4 2024 earnings report was a mixed bag. While the company missed on earnings estimates, its record deliveries, expanding product portfolio, and improving vehicle margins highlight its potential for long-term growth.
However, profitability remains elusive, and investors will be watching closely to see if NIO can sustain its momentum and convert its expanding product lineup into bottom-line improvements.
For long-term EV investors, NIO’s aggressive expansion, technological advancements, and market share gains remain promising, but the company must demonstrate improved financial performance to inspire greater confidence.
