NIO cuts its losses in the third quarter thanks to a new record in deliveries

The Chinese electric vehicle manufacturer NIO has taken a major step forward on its path to financial recovery. In the third quarter of the year, the company managed to significantly reduce its net losses to 3.48 billion yuan -roughly 420 million euros-, a 31 percent decrease compared with the same period in 2024 and 30 percent lower than the previous quarter. Although it is still in the red, the trend is clearly positive.

This has been possible because deliveries reached a new all-time record: between July and September NIO delivered 87,071 vehicles to its customers, 41 percent more than a year earlier and 21 percent more than in the second quarter. By brand, the main one NIO accounted for 36,928 units, while the more affordable Onvo and Firefly contributed 37,656 and 12,487 vehicles respectively. This shift towards more competitively priced models explains why revenue growth has lagged behind delivery growth.

Despite this, total revenue reached 21.94 billion yuan -roughly 2.68 billion euros-, also driven by services such as battery swapping and the charging network. The gross margin on vehicles rose to 14.7 percent, and the overall gross margin stood at 13.9 percent, the best level in three years.

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Another notable point is cost control. Research and development expenses fell 28 percent year on year to 2.39 billion yuan, while selling and administrative expenses grew only slightly. According to the company, these operational improvements enabled positive operating cash flow and reduced adjusted operating losses by more than 30 percent compared with the previous quarter.

“Growth of over 40 percent reflects the strength of our three brands in their respective market segments.”

Looking ahead to the fourth quarter, the company expects to deliver between 120,000 and 125,000 vehicles, which would represent an increase of up to 72 percent over the same period last year and a new delivery record.