NIO's Sales Double, But Why Are Losses Still Expanding?

According to the announcement by NIO (NIO.NYSE; 09866.HK), its Q4 and full-year 2024 financial report has just been released. This financial report comprehensively showcases NIO's operational status over the past year, which includes both impressive achievements such as increased sales and thorny issues like expanded losses, drawing widespread attention from all sectors.

From the financial report data, NIO's full-year vehicle delivery volume in 2024 reached 221,970 units, an increase of 38.7% compared to 2023. The fourth-quarter delivery volume was 72,689 units, a quarter-on-quarter increase of 17.5%, and a year-on-year increase of 45.2%. The significant growth in deliveries drove revenue up, with total revenue for the full year of 2024 reaching 65.732 billion yuan, a year-on-year increase of 18.2%; the total revenue for the fourth quarter was 19.703 billion yuan, a year-on-year increase of 15.2%, and a quarter-on-quarter increase of 5.5%. In terms of vehicle sales, the full-year vehicle sales for 2024 were 58.234 billion yuan, a year-on-year increase of 18.2%; the fourth-quarter vehicle sales were 17.476 billion yuan, a year-on-year increase of 13.2%, and a quarter-on-quarter increase of 4.7%. At the same time, vehicle profit margin and gross profit margin also improved, with the full-year vehicle profit margin for 2024 at 12.3%, higher than 9.5% in 2023; the fourth-quarter vehicle profit margin reached 13.1%, and the gross profit margin was 11.7%, while the gross profit margin in the same period of 2023 was only 7.5%. These figures indicate that NIO has achieved certain results in market expansion and improvement of product profitability.

However, NIO's financial situation also harbors hidden concerns. The net loss for the full year of 2024 was 22.402 billion yuan, an increase from 20.72 billion yuan in 2023; the fourth-quarter net loss was 7.112 billion yuan, a 32.5% increase from the same period in 2023 and a 40.6% increase from the third quarter. After excluding share-based compensation expenses and other factors, the adjusted net loss also showed an upward trend. In terms of operating expenses, although R&D costs decreased in 2024, sales, general, and administrative expenses increased by 22.8% year-over-year in the fourth quarter and 22.2% for the full year, mainly due to increased marketing activities for new brands and products as well as rising personnel costs from the expansion of sales and service networks.

Based on the comprehensive financial data and market performance of NIO, its development trend is a mix of positive and negative. On the positive side, the continuous growth in delivery volume and revenue demonstrates that NIO's products have a certain level of competitiveness in the market. For example, according to past announcements, NIO has continuously launched new models, enriching its product matrix, such as the launch of the family-oriented ONVO brand models, which successfully attracted more consumers and contributed to an increase in delivery volume. Market share data also reflects this growth trend, with the NIO brand maintaining a leading position in the domestic pure electric vehicle market for vehicles priced above 300,000 RMB. Since its launch, the market share of the ONVO L60 has steadily increased, placing it among the top three in the 200,000 to 300,000 RMB pure electric SUV market. This achievement has been recognized by industry research reports, some of which indicate that NIO's efforts in brand building and product differentiation are beginning to bear fruit, enhancing consumer recognition and loyalty towards its products.

However, NIO also faces many challenges. Continuous losses have put considerable financial pressure on the company, and although its cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits reached 41.9 billion yuan by the end of 2024, the situation of operating cash outflow and current liabilities exceeding current assets still needs to be taken seriously. In the highly competitive new energy vehicle market, NIO not only has to compete with international brands like Tesla but also faces challenges from domestic automakers such as BYD and Geely. Some opinions suggest that NIO needs to further optimize its cost structure, control operating expenses, accelerate technological innovation and product iteration, and improve the cost-effectiveness of its products to enhance market competitiveness.

NIO has made some progress in the new energy vehicle sector, but to achieve sustainable development and profitability goals, it still needs to continuously make efforts in cost control, market competition, and other areas. In the future, its development trend is worth continuous attention from the market.