Nio founder and CEO William Li has outlined a strategic focus on expanding sales and controlling costs as key factors to achieving profitability in the fourth quarter of 2025.
At a recent internal meeting, Nio’s leadership discussed three main objectives for the company: doubling sales, reaching single-quarter profitability by the end of 2025, and further developing systematic capabilities. This meeting marked the company’s first quarterly session after its 10th anniversary celebration.
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Li emphasized that sales growth is critical to Nio’s success, positioning it as the primary metric for measuring company performance. He stressed the importance of achieving rapid sales momentum, particularly during the initial months after launching a new vehicle model. According to company sources, there was a recognition that Nio has struggled to generate sufficient awareness of sales momentum in the early phases of new model lifecycles, a challenge the company aims to address going forward.
In addition to sales growth, Li highlighted cost control as another essential element in the company’s profitability strategy. While previously stating that Nio’s profitability goals were set for 2026, he now targets achieving single-quarter profitability by the fourth quarter of 2025. Nio is focusing on operational cost reduction as it works to improve financial efficiency, including the development of in-house technologies that will lower expenses.
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As part of its cost-cutting initiatives, Nio has introduced a system of Cell Business Units (CBUs) to ensure each department tracks and justifies its expenditures. These CBUs aim to improve financial transparency and ensure that resources are allocated effectively to meet the company’s objectives.
Nio has also implemented a “Cost Mining” initiative that began in early 2024, designed to identify and eliminate inefficiencies across the organization. The program has already shown positive results, exceeding its initial goals.
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With these strategic efforts in place, Nio is working towards creating a more streamlined and cost-effective operation as it pursues its growth and profitability targets for 2025.
Source: CNEVPOST