Shanghai (ZXZC)- NIO Inc., a leading player in China's smart electric vehicle market, has released its unaudited financial results for the second quarter (Q2) ending June 30, 2024. The company posted significant revenue and delivery growth but continues to face losses.

Photo credit: NIO

NIO's total revenues reached RMB17,446 million (US$2,400.6 million) in Q2 2024, marking a 98.9% spike compared to the same period in 2023 and a 76.1% hike from Q1 2024. Vehicle sales contributed RMB15,679.6 million (US$2,157.6 million), a 118.2% year-over-year surge, driven primarily by a sharp increase in delivery volume, offset by a slight reduction in average selling price due to adjustments in product mix and user rights since June 2023.

The company delivered 57,373 vehicles in Q2 2024, including 32,562 premium electric SUVs and 24,811 electric sedans, representing a 143.9% soar from Q2 2023 and a 90.9% leap from Q1 2024.

NIO's gross profit amounted to RMB1,688.7 million (US$232.4 million) in Q2 2024, a staggering 1,841% spike year-over-year, with a gross margin of 9.7%, up from 1% in Q2 2023. In the same period, the company's vehicle margin improved to 12.2% from 6.2% in the year-ago period, largely due to lower material costs, although tempered by adjustments in user rights.

Despite these gains, NIO reported a net loss of RMB5,046 million (US$694.4 million) in Q2 2024, a 16.7% decrease from the previous year. Excluding share-based compensation, adjusted net loss (non-GAAP) stood at RMB4,535.2 million (US$624.1 million).

The company’s research and development expenses were RMB3,218.5 million (US$442.9 million), reflecting a 3.8% decline from Q2 2023 but a 12.4% increase from Q1 2024 due to rising design and development costs for new products.

As of June 30, 2024, NIO held RMB41.6 billion (US$5.7 billion) in balance of cash and cash equivalents, restricted cash, short-term investment and long-term time deposits. 

Looking ahead, NIO expects vehicle deliveries in Q3 2024 to reach between 61,000 and 63,000 units, with revenues projected between RMB19,109 million (US$2,630 million) and RMB19,669 million (US$2,707 million). This forecast indicates a modest year-over-year revenue growth of 0.2% to 3.2%.