Nio posted a narrower net loss in the second quarter as it reduced expenses, while reiterating its goal of reaching its first quarterly profit in the final three months of the year.
The Chinese electric vehicle maker reported a net loss of RMB 4.99 billion ($697 million) for the three months ended June 30, its smallest since the fourth quarter of 2023, according to unaudited results released on Tuesday. That marked a 1% decline from a year earlier and a 26% drop from the first quarter of 2025.
Nio attributed the improved result to tighter cost controls. Research and development expenses fell 6.6% year-on-year to RMB 3.01 billion, while selling, general and administrative costs rose 5.5% to RMB 3.96 billion.
The company delivered 72,056 vehicles in the quarter, up 25.6% from a year ago and 71.2% from the prior quarter, within its guidance of 72,000 to 75,000. Quarterly revenue rose 9% to RMB 19.01 billion, while vehicle sales revenue reached RMB 16.14 billion. Gross margin improved to 10% from 7.6% in the first quarter.
Founder and CEO William Li told employees in an internal speech last month that profitability was “challenging but achievable.” He added, “If we achieve profitability, these rumors will be dispelled. User confidence will strengthen, and many issues will resolve themselves.”
Nio guided for third-quarter deliveries of 87,000 to 91,000 units, implying a record September tally of about 35,678 to 38,678 vehicles. It also forecast revenue between RMB 21.81 billion and RMB 22.88 billion, up as much as 22.5% from a year earlier.
As of June 30, the company held RMB 27.2 billion in cash, short-term investments and deposits, but reported negative shareholders’ equity due to current liabilities exceeding current assets. Nio said its financial resources remain sufficient to support operations for the next 12 months.
