On November 25th, on the occasion of NIO's 10th anniversary, NIO founder Li Bin released an internal letter stating, "The next two years are crucial, and achieving profitability for the company by 2026 is an indispensable task
In the internal letter, Li Bin requested the team to continuously strengthen the bottom-up system capacity building, focusing on improving the operational efficiency of basic business units. Li Bin stated that the next two years will be crucial, as we will continue to launch competitive new products, improve operational efficiency, double sales next year, and achieve profitability for the company by 2026. Li Bin also issued a military order for the new year: NIO aims to achieve 100% sales growth by 2025, with an annual sales scale of about 450000 vehicles.
Previously, Li Bin stated during the third quarter earnings conference call that starting from 2025, NIO will enter a new product cycle, with new product deliveries from Ledao and Firefly brands, and the entire group will enter a new high-speed growth cycle. He stated that as sales double next year, overall operations will continue to achieve positive growth, and it is expected that losses will narrow next year. The goal is to achieve profitability by 2026.
On November 20th, NIO released its third quarter 2024 financial report, which showed that the company's sales reached a new high of 62000 vehicles, revenue increased to 18.67 billion yuan, the gross profit margin of the entire vehicle continued to rise to 13.1%, and R&D investment was 3.32 billion yuan. Since 2016, the cumulative R&D investment has exceeded 53 billion yuan. Thanks to the positive conversion of free cash flow, NIO's cash reserves have increased to 42.2 billion yuan. NIO also released its strongest quarterly guidance: the delivery guidance for the fourth quarter is 72000 to 75000 vehicles, a year-on-year increase of 43.9% to 49.9%; The revenue guidance for the fourth quarter is 19.68 billion yuan to 20.38 billion yuan, a year-on-year increase of 15.0% to 19.2%, both of which have reached historic highs.
Guangzhou Daily Xinhua City Reporter: Deng Li