NIO Incorporated Reports Second-Quarter Earnings for 2024

NIO Incorporated (NIO) has reported a significant surge in its second-quarter earnings for 2024, with total revenue reaching RMB 17.4 billion, marking a 98.9% increase year-over-year (YoY). The electric vehicle (EV) manufacturer saw its vehicle sales revenue climb by 118.2% YoY to RMB 15.7 billion.

NIO delivered a record 57,373 units during the quarter, a 143.9% uptick from the previous year, and is projecting deliveries of 61,000 to 63,000 units in Q3. The company also launched its new model, the ONVO L60, which has already garnered significant pre-order numbers, surpassing expectations.

Key Takeaways

• NIO’s total Q2 revenue hit RMB 17.4 billion, a near-double YoY increase.
• Vehicle sales were the primary revenue driver, with a 118.2% YoY increase.
• Record deliveries of 57,373 units in Q2, with 61,000 to 63,000 units expected in Q3.
• Vehicle margin reached 12.2% in Q2; NIO targets a 15% margin by year-end.
• The ONVO L60 model launched with high pre-orders, aiming for 10,000 unit deliveries in December.

Company Outlook

• NIO plans to expand production capacity and build a third factory by Q3 next year.
• The company is targeting a long-term operational goal of a monthly volume of 40,000 NIO branded vehicles and a 25% vehicle margin.
• For ONVO branded vehicles, a monthly delivery target of 20,000 units next year is set, with a vehicle margin exceeding 15%.

Bearish Highlights

• NIO’s SG&A expenses increased due to higher sales volume and marketing campaigns.
• The company is controlling expenses while maintaining a similar R&D investment pace.

Bullish Highlights

• NIO branded vehicle sales have stabilized at 20,000 units per month.
• The company expects improvements in vehicle margin and volume.
• NIO’s NOP Plus autonomous driving feature is now used by over 300,000 users, with over 1.1 billion kilometers driven.

Misses

• No specific details provided on the autonomous driving progress.

Q&A Highlights

• NIO has not started budgeting for the next year but expects overall expense intensity to be similar to this year.
• NIO is on schedule for the launch of their flagship sedan, ET9, in Q1 of next year.
• International expansion plans continue with a focus on existing European markets and entry into the UAE market.

NIO has shown remarkable growth in Q2 2024, with increased revenue and vehicle deliveries. The ONVO L60 model shows promise, highlighting NIO’s positive market reception. Despite higher SG&A expenses, cost control and efficient R&D investments are expected to enhance profitability in the long term.

InvestingPro Insights

NIO holds a strong market capitalization of $10.04 billion, showcasing strategic financial management in the competitive EV landscape. Their year-over-year revenue growth stands at 30.94%, with a quarterly surge of 98.89%. However, challenges persist with gross profit margins at 7.84%.

In terms of stock performance, NIO displayed volatility, with a year of significant decrease but a strong return in the past week and month. For detailed insights on NIO’s financial health, further tips are available on InvestingPro.

Conference Call Details

Operator: Hello ladies and gentlemen, thank you for standing by for NIO Incorporated Second Quarter 2024 Earnings Conference Call. At this time all participants are in listen-only mode. Today’s conference call is being recorded. I’ll now turn the call over to your host, Mr. Rui Chen, Head of Investor Relations of the company. Please go ahead, Rui.

Rui Chen: Thank you. Good morning and good evening, everyone. Welcome to NIO’s Second Quarter 2024 Earnings Conference Call. The company’s financial and operating results were published in the press release earlier today and posted on the company’s IR website. On today’s call, we have Mr. William Li, Founder, Chairman of the Board, and Chief Executive Officer; and Ms. Stanley Qu, Chief Financial Officer.

• William Li: Hello, everyone. Thank you for joining NIO’s 2024 Q2 earnings call….

Operator: Thank you again for joining us today. If you have further questions, please feel free to contact NIO’s IR team. This concludes the conference call. You may now disconnect the line. Thank you.