Nio posted a record net loss in the fourth quarter, as selling, general and administrative (SG&A) expenses reached an all-time high, despite a slight improvement in gross margins, the Chinese electric vehicle (EV) maker said in its earnings report.
The companyās net loss widened to RMB 7.11 billion ($974 million), marking a 32.5% increase from a year earlier and a 40.6% rise from the third quarter. On an adjusted non-GAAP basis, net loss stood at RMB 6.62 billion, up 37.9% year-on-year and 50.1% sequentially.
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Revenue for the quarter reached RMB 19.7 billion, near the lower end of the company’s prior guidance, rising 15.2% year-on-year and 5.5% from the previous quarter. Vehicle sales revenue rose 13.2% year-on-year to RMB 17.48 billion, driven by higher deliveries but offset by lower average selling prices due to a shift in product mix.
Nio delivered a record 72,689 vehicles in the quarter, a 45.3% increase from a year earlier and a 17.5% rise from the third quarter. Other sales, which include power solutions and after-sales services, rose 33.8% year-on-year to RMB 2.23 billion.
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Cost of sales increased 9.9% year-on-year to RMB 17.39 billion, reflecting higher delivery volumes but partially offset by lower material costs per vehicle. Gross profit rose 80.5% year-on-year to RMB 2.31 billion, while gross margin improved to 11.7% from 7.5% a year ago and 10.7% in the prior quarter. Vehicle margin stood at 13.1%, up from 11.9% a year earlier.
SG&A expenses surged 22.8% year-on-year to RMB 4.88 billion, primarily due to increased sales and marketing activities and personnel costs linked to the company’s network expansion. R&D expenses declined 8.5% year-on-year to RMB 3.64 billion but rose 9.6% sequentially due to investment in new products and technologies.
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Nio ended the year with RMB 41.9 billion in cash and equivalents. Despite current liabilities exceeding current assets, the company said it has sufficient funds to sustain operations over the next 12 months.
For the first quarter of 2025, Nio expects deliveries between 41,000 and 43,000 vehicles, up 36.4% to 43.1% year-on-year. It forecasts revenue between RMB 12.37 billion and RMB 12.86 billion, implying a 24.8% to 29.8% annual increase.