NIO's Q1 revenue increased by 21.5% year-on-year, with a vehicle gross margin of 10%. The Q2 delivery guidance is expected to increase by 71%-78% quarter-on-quarter | Financial Report Insights
NIO's total revenue in Q1 increased by 21.5% year-on-year, but decreased by 38.9% quarter-on-quarter; the net loss was RMB 6.75 billion, an increase of 30.2% year-on-year, but a decrease of 5.1% quarter-on-quarter; new car deliveries were 42,094 units, an increase of over 40% year-on-year, but a decrease of 42.1% quarter-on-quarter. Q2 revenue is expected to be RMB 19.5-20.1 billion, an increase of 11.8%-15.0% year-on-year
In the first quarter of 2025, Nio's total revenue increased by 21% year-on-year, reaching RMB 12.035 billion, but decreased by 38.9% quarter-on-quarter. The net loss was RMB 6.75 billion, an increase of 30.2% year-on-year, and a decrease of 5.1% quarter-on-quarter. In the first quarter, new car deliveries reached 42,094 units, a year-on-year increase of over 40%, but a quarter-on-quarter decrease of 42.1%.
Looking ahead to the second quarter of 2025, Nio expects deliveries to be between 72,000 and 75,000 units, a year-on-year increase of approximately 25.5% to 30.7%, and a quarter-on-quarter increase of 71% to 78%. The revenue guidance is RMB 19.513 billion to RMB 20.068 billion, a year-on-year increase of 11.8% to 15.0%.
On June 3, Nio disclosed its financial report for the first quarter of 2025:
- Nio's revenue in the first quarter exceeded RMB 12.0347 billion (approximately USD 1.6584 billion), a year-on-year increase of 21.5%, and a quarter-on-quarter decrease of 38.9%;
- The net loss was RMB 6.75 billion (approximately USD 930.2 million), a year-on-year increase of 30.2%, and a quarter-on-quarter decrease of 5.1%. The adjusted net loss was RMB 6.28 billion, a year-on-year increase of 28.1%.
- Gross profit was RMB 920 million (approximately USD 127 million), a year-on-year increase of 88.5%, but a quarter-on-quarter decrease of 60.2%. The gross margin was 7.6%, an increase of 2.7 percentage points year-on-year, but a decrease of 4.1 percentage points quarter-on-quarter.
- The gross margin for complete vehicles was 10.2%, an improvement from 9.2% in the first quarter of 2024, but lower than 13.1% in the fourth quarter of 2024.
- The loss per share in the first quarter was RMB 3.29.
Nio's Q1 Deliveries Increased by 40.1% Year-on-Year, Vehicle Sales Revenue Increased by 18.6%
From the delivery data, Nio's Q1 delivery of 42,094 units achieved a strong year-on-year growth of 40.1%. This includes 27,313 Nio brand vehicles and 14,781 ONVO brand vehicles. Despite the significant year-on-year increase in delivery volume, there was a quarter-on-quarter decrease of 42.1%. The increase in vehicle sales revenue was 18.6%.
As of May 31, 2025, Nio's cumulative deliveries for 2025 reached 89,225 units, with a total cumulative delivery of 760,789 units. In April 2025, the company officially launched and began delivering its small smart high-end electric vehicle "Firefly," with plans to gradually introduce it to the global market in the near future.
In the first quarter, Nio's vehicle sales revenue was RMB 9.9393 billion (approximately USD 1.3697 billion), an increase of 18.6% compared to the first quarter of 2024, but a decrease of 43.1% compared to the fourth quarter of 2024.
The company stated in its financial report that the main reason for the increase in vehicle sales revenue compared to the first quarter of 2024 was the increase in delivery volume, partially offset by a decrease in average selling price due to changes in product mix. The decrease in vehicle sales revenue compared to the fourth quarter of 2024 was mainly attributed to a reduction in delivery volume affected by seasonal factors
Vehicle Gross Margin Breaks 10%, Cost Control Begins to Show Results but Faces Sequential Pressure
In the first quarter, Nio's gross margin showed positive signals. Q1 gross margin reached 7.6%, an increase of 2.7 percentage points year-on-year, mainly benefiting from the growth of high-margin businesses such as components and after-sales services, as well as a decrease in material costs per vehicle. Sequentially, the gross margin decreased by 4.1 percentage points from 11.7% in Q4.
The overall vehicle gross margin also increased from 9.2% in the same period last year to 10.2%, indicating that Nio's efforts in cost control are beginning to take effect. On a sequential basis, the overall vehicle gross margin also fell from 13.1% to 10.2%. The company attributed this to an increase in per-vehicle manufacturing costs due to a decrease in production volume.
Q1 Losses Continue to Widen, Shareholder Equity Turns Negative
What is concerning is the continued widening of Nio's losses. Q1 net loss was RMB 6.75 billion, a year-on-year increase of 30.2%, with a loss of RMB 3.29 per share. Excluding stock incentive expenses, the adjusted net loss still reached RMB 6.28 billion, a year-on-year increase of 28.1%.
In terms of operating expenses, selling and administrative expenses increased by 46.8% year-on-year to RMB 4.4 billion, mainly due to increased sales personnel costs and more marketing activities. R&D expenses were RMB 3.18 billion, a year-on-year increase of 11.1%, reflecting the company's continued investment in new product and technology development.
Nio's Chief Financial Officer, Qu Yu, stated in the financial report:
"Since the first quarter, we have implemented a series of cost control measures, including organizational restructuring, cross-brand integration, and efficiency improvements in R&D, supply chain, sales, and services.
Starting from the second quarter, the company aims to achieve structural improvements in overall cost efficiency and continue to make progress in operational performance."
As of the end of Q1, Nio had cash and cash equivalents totaling RMB 26 billion, a decrease compared to the end of last year. More concerning is that the company's shareholder equity has turned negative, with current liabilities exceeding current assets. Management stated that existing funds are sufficient to support operations for the next 12 months.
Q2 Delivery and Revenue Guidance Optimistic, Significant Sequential Growth
Looking ahead, Nio expects to deliver 72,000 to 75,000 vehicles in the second quarter, a year-on-year increase of approximately 25.5% to 30.7%, and a sequential increase of 71% to 78%.
Revenue guidance is set at RMB 19.5 billion to RMB 20.1 billion, a year-on-year increase of 11.8% to 15.0%.
Nio's founder, chairman, and CEO Li Bin stated:
"Starting from the second quarter, we have seen steady growth in monthly delivery volumes. In April, our new products ET9 and Firefly achieved significant market shares in the high-end executive market and the high-end small electric vehicle market, respectively. We have also seen growing demand for the L60. At the end of May, the fully upgraded ES6, EC6, ET5, and ET5T began deliveries.
Based on this, we expect total deliveries in the second quarter to reach 72,000 to 75,000 vehicles, a year-on-year increase of 25.5% to 30.7%."
Market Reaction
After the earnings report was released, Nio's US stock fell nearly 2% in pre-market trading.
