On November 25th, on the occasion of the company's 10th anniversary, Li Bin, founder, chairman, and CEO of NIO, issued an internal letter requesting the team to continuously strengthen the bottom-up system capacity building and focus on improving the operational efficiency of basic business units. Li Bin stated that the next two years will be crucial. Continuously launching competitive new products, improving operational efficiency, doubling sales next year, and achieving profitability by 2026 are essential tasks that cannot be missed.
On November 20th, NIO released its financial report for the third quarter of 2024. In the third quarter, the company's sales reached a record high of 62000 vehicles, with revenue growing to 18.67 billion yuan. The gross profit margin of the entire vehicle continued to increase to 13.1%, and the 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.
Li Bin stated during the earnings conference call that starting from 2025, NIO will enter a new round of product cycle, with new product deliveries from Ledao and Firefly brands, and the entire group will enter a new high-speed growth cycle. With sales doubling 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
After the release of the financial report, well-known investment banks including Deutsche Bank, Citigroup, Bank of America, Morgan Stanley, JPMorgan Chase, Bank of China International, CICC, etc. gave recognition to NIO.