Nio losses grow again in Q2

Nio’s sales in April-June were about 8.8 billion yuan (1.1 billion euros), down 14.8 per cent from Q2 2022 and down 17.8 per cent from Q1 2023. The company’s net loss in the second quarter of 2023 was about 6.1 billion yuan (770 million euros). This is 119.6 per cent more than in the same quarter last year and 27.8 per cent more than in the first quarter of 2023.

In terms of deliveries, Nio recorded the worst result in the past two years with 23,520 vehicles – in Q3 2021, the company had already delivered 24,439 vehicles, while the record is 40,052 vehicles from Q4 2022. Nevertheless, there is justified hope: in the course of the second quarter, Nio continued to switch production to the NT 2.0 platform and, for example, launched the new edition of the ES6 electric SUV in China on the basis of this NT 2.0. This has already paid off in July, as Nio delivered 20,462 units in the previous month, the first time it has delivered more than 20,000 vehicles in one month. If the July trend continues, sales figures could be significantly better in Q3.

However, when the turnaround in losses will occur also depends on future investments. Nio CEO William Li is convinced that a product cycle in the modern car world is only three to four years – instead of the seven years that are more common in the industry. This is why the first Nio models have already been converted to the second platform generation. Although this means that Nio has up-to-date products on the market more quickly, it also means that it has to invest much more frequently in new developments and, in some cases, new production facilities. What is clear is that as of 30 June 2023, Nio still had 31.5 billion yuan, or just under four billion euros, at its disposal.