Soaring over 14% after the results! Q2 revenue nearly doubled, is NIO stable now
Boosted by positive earnings, on September 5th Eastern Time, NIO (NIO.US), listed on the US stock market, saw its share price soar. By the close, the share price had risen by an impressive 14.39%, trading at $4.85 per share.
Affected by a typhoon, the Hong Kong stock market was closed for the entire day, so there was no trading activity for NIO (09866.HK) on the Hong Kong stock exchange. However, the Singapore stock market operated as usual, and NIO's shares listed in Singapore surged, with the share price increasing by 13.3% as of the time of writing.
In terms of news, NIO released its financial report for the second quarter of 2024, which was quite impressive and significantly exceeded market expectations.
According to the financial report, both the delivery volume and revenue of NIO reached historical highs, with a notable decrease in net losses. The delivery guidance for the third quarter exceeded market expectations, injecting a strong positive signal into the market.
Specifically, in the second quarter, NIO's revenue was 17.45 billion yuan, setting a historical record, with a year-on-year increase of 98.9%, nearly doubling, and a sequential increase of 76.1%, which was much higher than market expectations.
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The net loss was 5.046 billion yuan, narrowing by 16.7% year-on-year and by 2.7% sequentially; the adjusted net loss was 4.535 billion yuan, narrowing by 16.7% year-on-year and by 7.5% sequentially.
In terms of gross profit, in the second quarter, NIO's gross profit was 1.689 billion yuan, with a year-on-year increase of 1841% and a sequential increase of 246.3%. During the same period, the gross margin increased by 8.7 percentage points year-on-year and by 4.8 percentage points sequentially to 9.7%.
The significant revenue of NIO exceeded expectations, mainly due to the substantial increase in car sales and revenue. In the second quarter of this year, NIO delivered a record 57,400 new vehicles, with a year-on-year increase of 143.9% and a sequential increase of 90.9%.
In the same period, car sales revenue was 15.68 billion yuan, with a year-on-year increase of 118.2% and a sequential increase of 87.1%; the car gross margin was 12.2%, which increased by 6 percentage points compared to the same period last year and by 3 percentage points compared to the previous quarter.Regarding the improvement of losses, NIO's Chief Financial Officer, Yu Qu, stated at the performance meeting that thanks to continuous cost optimization, NIO's vehicle gross margin increased significantly in the second quarter. Moving forward, NIO will continue to focus on efficient R&D and investment in infrastructure, leveraging the growth potential of the mass market, adopting flexible market strategies, and continuously optimizing its product portfolio.
NIO also pointed out that the losses from the company's other businesses, apart from the automotive sector, are narrowing. With the increase in user base, the efficiency of after-sales service is improving, and the revenue and profit from battery swap services are also increasing. It was revealed that NIO's battery swap station business can break even when the daily swap volume exceeds 60 units, with the current daily average volume ranging from 30 to 40 units, and profitability is expected in the near future.
Looking ahead to the third quarter, NIO remains optimistic, expecting this year's Q3 deliveries to be between 61,000 and 63,000 units, representing a year-on-year growth of 10%-13.7%, exceeding market expectations; total revenue is projected to be between 19.109 billion and 19.669 billion yuan, with a year-on-year increase of 0.2%-3.2%. Both figures are expected to set historical highs.
So, where does NIO's confidence stem from?
First and foremost, it is undoubtedly the continuous increase in sales volume. After entering the second half of the year, NIO has maintained a relatively stable delivery level, with 20,498 vehicles delivered in July and 20,176 in August.

Among them, the upcoming new brand model, Ledao L60, is highly anticipated. It is reported that the first model of the Ledao brand, L60, is scheduled to be officially launched on September 19 and will begin deliveries at the end of September. Li Bin revealed that the first mass-produced Ledao L60 came off the assembly line on August 15, and the order situation has exceeded expectations.
Li Bin stated that the pre-sale price of this car is 219,900 yuan, and there is room for adjustment when it officially hits the market, with an expectation to deliver a total of 20,000 L60s in the second half of this year.
In addition, NIO's third brand, Firefly (with prices ranging from 100,000 to 200,000 yuan), which targets the entry-level market, is also highly anticipated and is expected to be delivered in 2025.
Market analysis suggests that as NIO advances with multiple brands, the technological dividends accumulated in the early stages can be rapidly released through scaling, thereby further enhancing its market competitiveness.
JPMorgan mentioned in its report that NIO's competitiveness in the electric vehicle market has improved, with its product line and technological innovation gaining market recognition. At the same time, NIO's market share in China is also growing. The bank announced an upgrade of NIO's rating to overweight and set a target price of $8.