NIO's Impressive Q2 2025 Performance: Doubling Deliveries and Enhancing Margins

Delivery Growth and Production Targets

NIO (NYSE:NIO) reported strong results for Q2 2025:

• Vehicle deliveries: 72,056 units (+25.6% YoY)
• Total revenue: RMB19 billion (+9% YoY, +57.9% QoQ)

Recent monthly deliveries show rapid growth:

• July 2025: 21,017 units
• August 2025: 31,305 units

Management set an ambitious Q4 2025 target:

• Quarterly group delivery target: 150,000 units
• Monthly delivery target: 50,000 units

This capacity ramp would approximately double Q2 2025 deliveries, positioning NIO for significant market share gains in the EV segment.

Margin Improvement and Financial Outlook

Q2 2025 financial highlights:

• Vehicle gross margin (GAAP): 10.3%
• Overall gross margin (GAAP): 10%
• Adjusted net loss: RMB4.1 billion (-34.3% QoQ)

Management’s Q4 2025 targets:

• Vehicle gross margin: 16% to 17%
• Non-GAAP breakeven

Key drivers for margin improvement:

• Full-cycle impact of new high-margin models (L90 and ES8)
• Ongoing product cost optimization

Technology-Driven Cost and Quality Advantages

NIO’s proprietary smart driving chip (NX9031):

• Full-scale deployment in ET9 and 2025 model upgrades
• Performance on par with four flagship chips in the industry
• Potential for BOM cost savings

Quality rankings:

• ET5 and ET5T: Top in their segments (J.D. Power)
• EC6 and ES6: Among top two in their segments

Future Outlook and Guidance

Q3 2025 delivery guidance:

• 87,000 to 91,000 units (+40.7% to 47.1% YoY)

Q4 2025 targets:

• Deliveries: 150,000 units
• Vehicle gross margin (non-GAAP): 16%-17%
• Non-GAAP breakeven targeted

2026 outlook:

• Non-GAAP R&D expense: RMB2 billion to RMB2.5 billion per quarter
• No new model launches before 2026

NIO’s strong Q2 2025 performance and ambitious targets for the remainder of the year demonstrate the company’s potential for significant growth in the competitive EV market. With a focus on technology-driven advantages and margin improvement, NIO aims to strengthen its position as a leading EV manufacturer.