NIO Inc. (NIO, Financial) released its financial results for the third quarter ending September 30, 2024. The company reported total revenue of 18.6735 billion yuan, a year-over-year decrease of 2.1% but a sequential increase of 7.0%. The net loss widened to 5.0597 billion yuan, marking an 11.0% increase from the previous year and a 0.3% increase from the previous quarter. On a non-GAAP basis, the adjusted net loss was 4.4126 billion yuan, showing an 11.6% year-over-year increase but a 2.7% sequential decrease.
Following the earnings release, NIO's founder, chairman, and CEO, William Li, along with CFO Steven Feng, participated in a conference call to provide insights into the financial results and address analysts' queries.
During the Q&A session, Morgan Stanley analyst Tim Hsiao inquired about the strategic synergy between NIO's brands. The company launched its sub-brand, ONVO, with the L60 model in September. Li acknowledged a decline in NIO brand deliveries in October compared to September, attributing this to strategic adjustments. NIO had previously maintained a monthly delivery volume of 20,000 units but faced significant margin pressures. To address this, the company reduced promotional spending by approximately 15,000 yuan, impacting sales but aligning with expectations.
Li expressed optimism for November, citing stable pricing and recovering user demand. He emphasized the success of NIO's multi-brand strategy, targeting different user segments. The ONVO brand primarily competes with vehicles in the same price range, such as Tesla's Model 3, with minimal overlap affecting NIO customers. According to internal data, only about 20% of users might consider choosing between NIO and ONVO products, indicating that the dual-brand approach has successfully expanded the user base.
