Nio, the Chinese electric vehicle (EV) maker, reported a staggering net loss of RMB 7.11 billion yuan ($974 million) in the fourth quarter of 2024. This marked a significant 32.5 percent increase year-on-year and a substantial 40.6 percent increase compared to the previous quarter.
The company’s revenue for the quarter reached RMB 19.7 billion, which was at the lower end of the previously provided guidance range. Despite this, the revenue saw a 15.2 percent increase year-on-year and a 5.5 percent increase quarter-on-quarter.
Nio delivered a record 72,689 vehicles in the fourth quarter, representing a 45.25 percent increase year-on-year and a 17.52 percent increase from the third quarter. The company’s vehicle sales revenue also saw a significant increase, reaching RMB 17.48 billion in the fourth quarter.
On the financial front, Nio’s gross profit for the quarter stood at RMB 2.31 billion, marking an 80.5 percent increase year-on-year and a 15.0 percent increase quarter-on-quarter. The gross margin for the fourth quarter was 11.7 percent, showing an improvement from the previous quarters.
Despite the record loss, Nio expressed confidence in its ability to sustain operations in the next 12 months. The company’s financial report stated that while current liabilities exceeded current assets as of December 31, 2024, it had sufficient funds to support ongoing operations.
Looking ahead, Nio provided guidance for the first quarter, expecting deliveries to range between 41,000 and 43,000 vehicles. The company also projected revenue for the quarter to be between RMB 12.37 billion and RMB 12.86 billion, indicating a year-on-year growth of about 24.8 percent to 29.8 percent.
In summary, Nio faced significant challenges in the fourth quarter of 2024, with a record net loss and increasing expenses. However, the company remains optimistic about its future prospects and is focused on delivering strong performance in the coming quarters.
