Nio founder, chairman, and CEO William Li recently emphasized the importance of volume and cost reductions in an internal meeting as the company enters 2025. During the meeting, Li outlined three core visions for Nio — doubling sales, striving for single-quarter profitability in the fourth quarter of 2025, and continuing to build systematic capabilities.
This meeting marked Nio’s first quarterly gathering after celebrating its 10th anniversary and lasted for about an hour. According to a report from local media outlet 21jingji, Li stressed the significance of sales, highlighting it as a fundamental aspect for the company. He emphasized that sales are crucial for achieving profitability, competing effectively, and overall business operations. Li urged the entire company to prioritize sales as the core metric for measuring the results of their work.
In addition to focusing on sales, Li also underscored the importance of cost reduction and profitability. While on the third-quarter earnings call in 2024, Li had mentioned aiming for profitability by 2026. However, internally, he set a more ambitious target of achieving single-quarter profitability by the fourth quarter of 2025. To reach this goal, Li emphasized the core importance of cost control within the company.
Nio’s new models for this year will feature the SkyOS operating system, which will not only enhance performance but also lead to significant reductions in royalty payments. The introduction of Nio’s in-house chip will further contribute to cost savings. The upcoming ET9, set to be delivered next month, will be the first model to incorporate Nio’s own Shenji NX9031 autonomous driving chip based on a 5 nm process.
Li also announced plans for new models or facelifts to be released every quarter starting in the second quarter of this year, featuring Nio’s in-house developed Shenji chip. To further control operating costs, Nio established Cell Business Units (CBUs) in January, with each department having a dedicated cost checking center to monitor expenses and project budgets closely.
The implementation of CBUs is part of Nio’s broader cost control measures, including the “Cost Mining” initiative initiated in 2024. This initiative aims to identify and eliminate ineffective and inefficient expenditures, ensuring that the company operates with optimal financial efficiency. Li has expressed satisfaction with the progress of the “Cost Mining” initiative, stating that it has largely met its goals and even exceeded expectations.
Overall, Nio’s focus on boosting sales, reducing costs, and achieving profitability underscores the company’s commitment to sustainable growth and success in the competitive electric vehicle market. With strategic initiatives in place and a clear vision for the future, Nio is poised to continue its trajectory of innovation and leadership in the EV industry.
