Nio, a leading electric vehicle manufacturer, recently reported its financial results for the first quarter of 2025. The company experienced a net loss of RMB 6.75 billion, marking a 30.19 percent increase year-on-year. Despite this increase, the net loss decreased by 5.08 percent compared to the previous quarter.
Operating cash outflow was observed in the first quarter, with current liabilities surpassing current assets. This financial scenario indicates a challenging period for Nio, requiring strategic adjustments to improve its financial position.
In terms of revenue, Nio generated RMB 12.03 billion in the first quarter, falling slightly below analysts’ expectations and the company’s guidance range. The revenue for the quarter showed a 21.46 percent increase compared to the same period last year but a 38.92 percent decrease from the previous quarter.
Vehicle sales for the first quarter totaled RMB 9.94 billion, reflecting an 18.6 percent increase from the previous year but a significant drop from the fourth quarter of 2024. The increase in automotive revenue was primarily driven by higher delivery volumes, offset by a decline in average selling prices due to changes in product mix.
Nio delivered 42,094 vehicles in the first quarter, meeting its guidance range of 41,000 to 43,000 vehicles. While this represented a 40.07 percent increase from the previous year, it marked a 42.09 percent decrease from the previous quarter’s deliveries.
The company’s gross profit for the first quarter reached RMB 920 million, with a gross margin of 7.6 percent. The vehicle margin was reported at 10.2 percent, showcasing a slight improvement from the previous year but a decline from the previous quarter.
Research and development expenses for the quarter amounted to RMB 3.18 billion, reflecting an 11.1 percent increase from the previous year. Selling, general, and administrative expenses totaled RMB 4.4 billion, representing a significant increase from the previous year.
Despite the financial challenges faced by Nio in the first quarter, the company remains optimistic about its future performance. Nio has set a delivery target of 72,000 to 75,000 units for the second quarter, with revenue expected to range between RMB 19.5 billion and RMB 20.07 billion. These targets indicate Nio’s commitment to growth and innovation in the electric vehicle market.
