Beijing, November 24, 2024 – Nio, a prominent Chinese electric vehicle manufacturer, announced a growing net loss in its latest quarterly results, despite record vehicle deliveries. CEO William Li, often referred to as 'China's Elon Musk,' reported a net loss of 5.06 billion yuan (approximately $700 million) for Q3, an 11% increase compared to the same period last year.
Following the announcement, Nio's stock dropped nearly 7%. The company delivered 61,800 vehicles in the last quarter, setting a new record, yet struggled with lower average selling prices due to intense competition in the electric vehicle market.
Other Chinese EV manufacturers, including Zeekr and Xpeng, also reported significant losses despite high delivery numbers. Zeekr, a brand under Geely, delivered a record 55,000 vehicles in Q3, a 50% increase year-over-year, while Xpeng reported record sales in October but faced a net loss of 1.81 billion yuan ($250 million).
In contrast, BYD, Nio's main competitor, reported a 11.5% increase in net profit to 11.6 billion yuan ($1.6 billion) in its latest quarter, benefiting from a strong hybrid vehicle lineup and efficient production practices. Analysts suggest that BYD's vertical integration strategy has helped maintain low costs amid rising competition.
He Xiaopeng, CEO of Xpeng, warned in a recent interview that many Chinese EV manufacturers may not survive the next decade, predicting a significant market consolidation.