Nio Posts 25.53 Billion Yuan Revenue, Rejects Aggressive Price Cuts
Nio posted Q1 revenue of 25.53 billion yuan, up 112% year-on-year, achieved a 66.8 million yuan adjusted operating profit, 19% gross margin and guided Q2 deliveries of 110,000-115,000 units. The EV maker will reject aggressive price cuts, citing over RMB 10,000 per-unit material cost headwinds, targeting 17%-18% full-year vehicle margins.
1. Q1 Financial Results and Q2 Outlook
Nio delivered 25.53 billion yuan in revenue for the quarter, marking a 112% increase year-on-year, and posted a 66.8 million yuan adjusted operating profit with a 19% gross margin. It guided second-quarter deliveries of 110,000-115,000 units, up from 83,500 in Q1.
2. Vehicle Demand Trends
The ES8 SUV remained a key profit driver, while announcement of the upcoming ES9 flagship SUV spurred ES8 order intake to climb 30%. Positive reception of the ES9 launch is expected to further bolster sales momentum for both models.
3. Pricing Strategy
Nio’s leadership confirmed it will reject overaggressive price cuts in China’s competitive EV market to preserve profitability. The company plans to scale back incentives and promotions, targeting full-year vehicle margins of 17%-18% rather than volume-led growth.
4. Material Cost Pressures
Rising costs for semiconductors, batteries and raw materials such as lithium carbonate, nickel cobalt manganese, copper and aluminum have increased cost impact by more than RMB 10,000 per unit starting in Q2. These headwinds underpin Nio’s shift toward margin-focused strategies.