Nio (NIO -0.49%), a prominent name in premium smart electric vehicles (EVs), released its second-quarter 2024 results on Sept. 5, reporting higher-than-expected vehicle deliveries and total revenues. Nio delivered 57,373 vehicles, above the 56,000 that had been the upper end of its guidance range. Revenue was 17.446 billion yuan (approximately $2.4 billion) compared to the top-end forecast of 17.135 billion yuan. Despite that, Nio reported a significant net loss of 5.046 billion yuan, although this was a smaller loss than in the prior-year period.
| Metric | Q2 2024 Result | Q2 2024 Guidance | Q2 2023 Result | % Change (YoY) |
|---|---|---|---|---|
| Vehicle deliveries | 57,373 | 54,000 to 56,000 | 23,520 | 143.9% |
| Revenues | 17.446 billion yuan | 16.587 billion yuan to 17.135 billion yuan | 8.772 billion yuan | 98.9% |
| Gross profit | 1.689 billion yuan | -- | 87 million yuan | 1,841.0% |
| Gross margin | 9.7% | -- | 1.0% | 870 basis points |
| Net profit | (5.046 billion yuan) | -- | (6.056 billion yuan) | N/A |
Source: Management's guidance from the Q1 2024 earnings report released June 6.
Understanding Nio
China-based Nio is a large player in the EV sector, primarily catering to its domestic market with a lineup of smart electric SUVs and sedans. The company's integrated ecosystem offers energy and service solutions like battery swapping and home charging, which enhance the customer experience. Recently, Nio has been focused on expanding its market reach and improving its technology and manufacturing capabilities. Key factors for its success include maintaining a versatile product line, innovative energy packages, and superior after-sales services.
In Q2 2024, Nio concentrated on ramping up its vehicle deliveries, improving its gross margin, and expanding its charging and battery-swapping network. It also emphasizes innovations in autonomous driving.
Quarterly Highlights
Nio delivered 57,373 vehicles in Q2, with a mix of 32,562 premium smart electric SUVs and 24,811 premium smart electric sedans, driven by strong demand for its new models.
Total revenues for the quarter reached 17.446 billion yuan (approximately $2.4 billion). Comparatively, vehicle sales surged to 15.68 billion yuan, up 118.2% year over year.
Gross profit also rose by 1,841% to 1.689 billion yuan, and its gross margin improved considerably to 9.7%, up from 1.0% in the prior-year period.
However, Nio's losses from operations remained high at 5.209 billion yuan ($716.8 million), although that was 14.2% less than it lost in Q2 2023. Similarly, the net loss was 5.046 billion yuan ($694.4 million), a decrease of 16.7% from the same quarter the previous year.
Nio made significant advances in its technology and service packages. Its AI-themed Nio IN 2024 event showcased an intelligent driving chip and a full-domain vehicle operating system. These innovations are aimed at enhancing vehicle features and achieving cost competitiveness. Additionally, in August, it announced its "Power Up Counties" plan to bolster its charging and battery-swapping network across China.
During the quarter, the company also issued 30 million Class A shares to facilitate future exercise options and share incentive awards.
Looking Ahead
In Q3, Nio expects to deliver between 61,000 and 63,000 EVs. Total revenues for the quarter are anticipated to be between 19.109 billion yuan ($2.630 billion) and 19.669 billion yuan ($2.707 billion).
Investors should keep an eye on Nio’s ongoing efforts to enhance vehicle margins and manage operating costs. The upcoming quarters will be critical as the company aims to leverage its technological innovations and expanded product offerings to drive growth while improving profitability.
