Chinese electric vehicle (EV) maker NIO has just announced its fourth-quarter (Q4) and full-year results for 2024, showing a notable increase in revenue driven by a rise in vehicle deliveries. However, despite these gains, the company’s net losses have widened, sparking concern among investors.
Revenue and Delivery Surge
NIO saw significant growth in its total revenues, reaching RMB 19.7 billion (about $2.7 billion) for Q4 2024. This represents a 15.2% year-over-year increase and a 5.5% rise compared to the previous quarter. A major contributor to this growth was the company’s vehicle sales, which brought in RMB 17.5 billion ($2.4 billion) in revenue. This is a 13.2% increase from Q4 2023 and a 4.7% growth compared to Q3 2024.
The company’s vehicle deliveries also hit record numbers, with a total of 72,689 units delivered in Q4 2024. This is a 45.2% increase compared to the same period last year. Overall, NIO delivered 221,970 vehicles in 2024, marking a 38.7% growth year-over-year.
Profitability Concerns Despite Growth
Despite the surge in sales and deliveries, NIO posted a net loss of RMB 7.1 billion (around $974 million) for the quarter. This is a 32.5% increase in net loss compared to Q4 2023 and a 40.6% rise from the previous quarter. While the company’s revenue numbers were impressive, the widening losses are raising questions about its profitability moving forward.
Stock Response and Future Outlook
Following the release of the Q4 results, NIO’s stock saw a decline, dropping about 4% in premarket trading on March 21, 2025. Over the past year, the stock has lost nearly 8% of its value, reflecting investor concerns.
Looking ahead, NIO has provided a conservative outlook for Q1 2025, predicting vehicle deliveries between 41,000 and 43,000 units. The company expects revenue to range from $1.69 billion to $1.76 billion, falling short of analyst expectations.
Competitive Landscape
NIO’s financial challenges come amid intense competition in China’s EV market. Many local automakers have adopted aggressive pricing strategies to gain market share, which has put pressure on NIO’s average selling prices. This, in turn, has impacted the company’s revenue growth and widened its losses.
Conclusion
NIO’s strong delivery numbers and growing revenue highlight its expansion in the electric vehicle market. However, the increasing net losses are a significant concern as the company navigates a highly competitive landscape. As the company aims to reach profitability, all eyes will be on how it adjusts its strategies to overcome these financial hurdles in the upcoming quarters.
