Shanghai (Gasgoo)- On November 25, marking NIO's 10th anniversary, the company's founder, chairman, and CEO, William Bin Li, addressed all employees with an internal letter titled "Stay True, Focus on Action" (title in translation).
In the letter, he underscored the critical importance of the next two years for NIO's growth, emphasizing that achieving profitability by 2026 hinges on doubling sales in 2024, launching competitive new products, and continuously improving operational efficiency.
Reflecting on the past decade, Mr. Li highlighted NIO's milestones in technology, market performance, energy replenishment infrastructure, and user-centric philosophy.
To be specific, the company has developed 12 full-stack technology systems, filed over 9,300 patents, and captured more than 40% of the market share in China's premium pure electric vehicle segment for cars priced above 300,000 yuan. NIO has also built 2,750 battery swap stations and over 24,200 charging piles across China and Europe, while cultivating a global user community of over 620,000 based on its user-centric philosophy.
Mr. Li noted that the smart electric vehicle industry is now in its most intense and unforgiving phase of competition, predicting that only a few exceptional companies will survive the next two to three years. Despite navigating multiple crises over the past decade, he warned that the challenges ahead demand higher levels of competitiveness, with no room for weaknesses or quick victories.
To address these challenges, Li called on employees to remain committed to NIO's mission and focus on effective execution.
The company recently reported total revenues of 18,673.5 million yuan (US$2,661.0 million) for the third quarter (Q3) of 2024, a slight decline of 2.1% compared to the same period in 2023 but a 7% increase over the previous quarter. Vehicle sales contributed 16,697.6 million yuan (US$2,379.4 million), down 4.1% year-on-year but up 6.5% quarter-on-quarter.
NIO delivered 61,855 vehicles in Q3 2024, comprising 61,023 units from its premium brand NIO and 832 units from its family-focused ONVO brand. This marks an 11.6% increase from the same period in 2023 and a 7.8% rise from the previous quarter.
Gross profit for the quarter stood at 2,007.4 million yuan (US$286.0 million), reflecting a robust 31.8% year-on-year jump and an 18.9% rise from the second quarter (Q2）of 2024. In the same period, gross margin improved to 10.7%, up from 8% for the year-ago period and 9.7% from the previous quarter. The company attributed this improvement to increased vehicle margins and higher sales of parts, accessories, and after-sales services, which carry relatively higher margins.
The vehicle margin also rose to 13.1% in Q3 2024, compared to 11% in Q3 2023 and 12.2% in Q2 2024. This year-on-year growth was driven by reduced material costs per unit, although partially offset by a lower average selling price due to product mix adjustments.
