Nio Reports 32.5% Increased Q4 Loss Amid Rising EV Competition

Nio, the Chinese electric vehicle manufacturer, reported a widened net loss of 7.11 billion yuan ($974.3 million) in Q4 2024, a 32.5% increase from the previous year, primarily due to higher research and development as well as marketing expenses. Despite this, the company achieved record vehicle deliveries of 72,689 units in the fourth quarter, reflecting a 45.2% year-over-year increase, while total revenues reached 19.7 billion yuan ($2.69 billion), marking a 15.2% rise. Analysts have expressed caution, with BofA lowering its price target on Nio's stock and highlighting concerns over operating expenses, while Citi anticipates a decline in profit margins in Q1 due to seasonal slowdowns. Nio's CEO William Li noted the company is entering a new product cycle with expectations of increased vehicle deliveries and revenue growth in the coming quarters. Plans for 2025 include launching the affordable Firefly brand and enhancing profitability through cost reduction and operational efficiency. Nio closed the year with significant liquidity, totaling 41.9 billion yuan ($5.7 billion) in various assets, providing support for future operations.