NIO's Q2 2025 Report: Record Deliveries and a Clear Roadmap to Breakeven & William Li remarks

NIO has released its unaudited financial results for the second quarter of 2025, revealing a quarter of significant operational and financial growth. The below report highlights record-breaking vehicle deliveries, a surge in revenue, and a strategic path toward achieving profitability by the end of the year.

Strong Revenue and Delivery Growth

The second quarter saw a massive leap in vehicle deliveries, with 72,056 smart EVs delivered, marking a 25.6% increase year-over-year. This strong performance translated directly to the top line, with total revenue reaching RMB19 billion, a robust 57.9% increase from the previous quarter. Vehicle sales, a key indicator, also saw a substantial increase, growing 62.3% quarter-over-quarter to RMB16.1 billion. The company’s other sales, which include its battery swap network and after-sales services, also contributed significantly, growing 37.1% quarter-over-quarter to RMB2.9 billion.

Navigating the Path to Profitability

While top-line growth is impressive, the report also focuses on improving efficiency and reducing losses. Both the overall gross margin and the vehicle-specific gross margin reached 10% and 10.3%, respectively. This indicates a positive trend in controlling costs and improving the profitability of each vehicle sold.

On the loss side, the company made notable strides. The non-GAAP operating loss was RMB4 billion, a 32.1% improvement quarter-over-quarter. Similarly, the non-GAAP net loss decreased by 34.3% quarter-over-quarter to RMB4.1 billion. This focus on trimming losses is a key part of management’s strategy, with the ultimate goal of achieving group non-GAAP operating breakeven in Q4 2025.

Aggressive Targets and Strategic Initiatives

Looking ahead, management has set ambitious targets for the remainder of 2025. Q3 delivery guidance is set between 87,000 and 91,000 vehicles, representing a projected year-over-year growth of up to 47.1%. For Q4, the company is aiming for an average of 50,000 deliveries per month, for a total of 150,000 units. To support these targets, the company is ramping up production, with the L90 model’s supply chain capacity targeted to reach 15,000 units per month by October.

Management also expects significant margin improvement, targeting a group vehicle gross margin of 16%-17% in Q4, with the L90 and ES8 models each expected to hit 20%. This will be driven by efficiency gains from the company's third-generation platform, which features a high-voltage architecture and an in-house smart driving chip.

Strategic Focus and Brand Expansion

A key element of NIO’s strategy is its multi-brand approach. The company noted that no new models will be launched for the rest of 2025, as full production capacity will be dedicated to existing models. This is a strategic move to optimize production and ensure the company can meet its ambitious delivery targets. The company's new Firefly brand, focused on the high-end small car market, has already proven to be a success, with over 10,000 deliveries within its first three months.

The expansion of the company's charging and swap network continues to be a core pillar of its strategy, with 3,542 power swap stations and over 27,000 charging points deployed worldwide as of July 2025. This extensive infrastructure provides a competitive advantage and supports the growing user base.

Operational and Future Outlook, remarks by William Li: The company's Founder, Chairman, and CEO

• Efficiency and Cost Control:  Systematic improvements in operational efficiency and cost controls are leading to better financial performance.

• Sales and Service Network: The sales and service network for all three brands—NIO, Envoy, and Firefly—is operating efficiently, with 176 NIO Houses, 416 NIO Spaces, and 414 Envoy stores.

• Multi-Brand Strategy:  The multi-brand strategy is expected to drive sales growth and increase market share across different segments.

• Future Goals:  With rising sales and improving margins, the company is on track for a new phase of rapid growth.

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