Nio Posts Wider Q1 Loss Despite Surge in Deliveries, Bets on Onvo and Firefly for Growth

Chinese electric vehicle maker Nio (NYSE: NIO) reported a deeper net loss in the first quarter of 2025 despite strong delivery growth driven by its more affordable Onvo brand, highlighting persistent profitability challenges even as the company expands its product lineup.

Nio delivered 42,094 vehicles in Q1 2025, a 40.1% increase from the same period a year earlier, with Onvo accounting for 14,781 units and the core Nio brand contributing 27,313 units. However, compared with its record-setting fourth quarter of 2024, deliveries fell sharply by 42.1%.

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Quarterly revenue rose to RMB 12.0 billion ($1.46 billion), up 21.5% year-on-year but still 38.9% below the previous quarter. Nio’s net loss widened to RMB 6.75 billion ($818 million), a 30.2% increase over Q1 2024, though losses narrowed 5.1% compared to Q4 2024.

“We have seen a steady increase in monthly delivery volume since the beginning of the second quarter,” said William Bin Li, Nio’s founder and CEO. “Our new products, the ET9 and Firefly, have secured notable market shares in the premium executive and high-end small electric car segments.”

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Nio reported 47,131 deliveries in April and May combined—already surpassing the first quarter total—with June numbers still to come. The company expects Q2 deliveries to reach between 72,000 and 75,000 units, implying annual growth of 25.5% to 30.7%.

CFO Stanley Yu Qu emphasized internal reforms aimed at improving cost structure: “We have implemented a range of cost control measures, including organizational restructuring, cross-brand integration, and operational efficiency improvements. These are expected to yield structural benefits starting in Q2.”

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Nio’s portfolio continues to evolve, with refreshed versions of its mid-range models—the ES6, EC6, ET5, and ET5 Touring—launched in China in May and global rollouts planned. The Firefly small EV, which began deliveries in April, is expected to support further volume growth.

In contrast, rival Xpeng (NYSE: XPEV) reported a significantly lower net loss of €81 million in Q1, nearly halving its deficit and signaling a path toward break-even that Nio has yet to achieve.