NIO Financial Report Analysis: Battery Swap Model Impacts Profit, Q2 Revenue Expected to Grow 13%

Compared to other new automakers, NIO insists on its battery swap strategy. As of March 2025, it had built 3,239 battery swap stations nationwide, covering over 90% of districts and counties.

However, the construction of swap stations also implies significant cost pressure. In recent years, NIO's losses have continued to widen. Under the battery swap model, what path will NIO take?

I. 2024 Revenue Growth Driven by the Ledo Brand

In 2024, NIO's full-year operating revenue reached 65.73 billion CNY, a year-over-year increase of 18.2%.

This was primarily attributable to a significant increase in deliveries and optimized adjustments to the product mix. The Ledo brand contributed nearly 9% of the delivery volume in 2024, becoming a second growth curve.

In terms of deliveries, NIO cumulatively delivered 221,970 new vehicles in 2024, a year-over-year increase of 38.7%. The substantial rise in sales directly drove the growth of automobile sales revenue, becoming a key driver of operating revenue growth. As demand in the NEV market continues to be released, consumer recognition of the NIO brand has gradually improved, with brand awareness and reputation continuously increasing, thereby attracting more consumers to choose NIO's products.

At the product structure level, NIO continues to enrich its product line to meet the diverse needs of different consumers.

Its products cover multiple segments, including different model categories from compact SUVs to luxury sedans, covering a price range of 300,000 to 800,000 CNY. This diversified product layout allows NIO to more effectively adapt to dynamic market changes and cater to the needs of different consumer groups, thereby increasing market share and sales revenue.

For example, mainstay models like the ES6 and EC6, relying on their excellent performance, comfortable interior design, and advanced smart technology features, have performed outstandingly in the market, gaining widespread consumer recognition and playing an important role in driving operating revenue growth.

II. Sustained Losses, Difficult to Reduce in the Short Term

NIO's profit performance in 2024 was not optimistic. The full-year net loss reached 22.4 billion CNY, expanding 8.1% year-over-year, equivalent to a daily loss of over 60 million CNY.

R&D investment and operating costs remain high. In 2024, NIO's R&D investment was 13.037 billion CNY. Although it decreased year-over-year, it remained at a high level. These R&D investments were primarily used for core areas such as intelligent driving, battery technology, and battery swap technology to enhance product competitiveness and technological content, but it is difficult to achieve profitability in the short term.

Sales, general, and administrative expenses also increased. In 2024, this expense reached 15.74 billion CNY, an increase of 22.2% year-over-year. This was mainly due to NIO investing significant resources in market promotion, brand building, sales channel expansion, and after-sales service. To enhance brand awareness and market share, NIO hosted various marketing events and built numerous NIO HOUSEs and sales outlets, all of which incurred high costs. The newly launched sub-brands Ledo and Firefly, in their initial market expansion phase, required substantial investment in brand promotion and channel building, but their market performance fell short of expectations, also impacting profits to a certain extent.

The high cost of building and operating the battery swap network is also a key component of the cost structure. By the end of 2024, NIO had cumulatively built over 2,300 swap stations. The construction and operation of the swap network require huge capital investment, covering equipment procurement, site leasing, battery reserves, and operation and maintenance personnel costs. In 2024, the swap business alone lost 3.12 billion CNY, with an average of only 32 service sessions per station per day, while achieving breakeven requires 50 sessions per day. Although the battery swap model provides users with a convenient energy replenishment method and strengthens brand competitiveness, given the current situation, its high cost has a significant negative impact on the company's profits.

III. Rapid Sales Growth in 2025, but Market Share Declines

In Q1 2025, NIO maintained its growth trajectory, with deliveries reaching 42,094 units, a year-over-year increase of 40.1%. First-half sales were 74,445 units, but facing fierce competition, its industry ranking fell to eighth.

From a brand contribution perspective in Q1, the NIO brand delivered 27,313 units, demonstrating its strong brand influence and product competitiveness, maintaining a stable share in the high-end market.

The Ledo brand delivered 14,781 units. As market promotion deepens and product recognition improves, Ledo's sales are growing steadily, becoming a new driving force for NIO's sales growth.

Sales growth in Q1 2025 benefited from multiple factors. The launch of new products successfully attracted consumer attention. The NIO ET9, as an intelligent electric executive flagship mode), has been recognized by many innovation leaders since deliveries began on March 29th. Its advanced technology and luxury features are highly favored by high-end consumers. The intelligent electric premium compact car Firefly went on sale on April 19th and began deliveries on April 29th, also playing a positive role in sales growth.

MoonFox iApp data shows that with sustained sales growth, the penetration rate of the NIO app continues to increase.

IV. NIO's Q2 2025 Revenue Expected to Grow 13% Year-over-Year

On July 31st, NIO's Ledo brand flagship SUV—the Ledo L90—was officially launched, with nationwide deliveries starting on August 1st. The new car is positioned as an intelligent, spacious family vehicle, offering six-seat and seven-seat layout options. The six-seat Ledo L90 starts at 265,800 CNY for the outright purchase option and 179,800 CNY for the battery rental option (BaaS). The seven-seat version starts at 271,800 CNY for outright purchase and 185,800 CNY for BaaS.

The Ledo L80 is expected to launch in Q4 2025. Codenamed "Blanc" (勃朗峰), this model is hailed as "NIO's largest model ever" due to its impressive body size, easily exceeding 5 meters in length, reflecting a spacious interior aimed at providing ultimate comfort for family trips and business reception. The L80 will implement a "one car, two versions" strategy, offering both 6-seat and 7-seat layouts to further meet diverse market demands and compete directly with rivals like the Tesla Model Y.

The third-generation ES8 is also scheduled for release in Q4 2025. As an important model for the NIO brand, the third-gen ES8 will undergo comprehensive upgrades in technology, features, and performance. It is expected to be equipped with NIO's latest self-developed technologies, such as more advanced intelligent driving systems, efficient battery technology, and optimized chassis tuning, to enhance product competitiveness. In terms of exterior and interior design, the third-gen ES8 will likely continue the NIO brand's family design language with certain innovations and improvements to meet consumer demands for luxury and a sense of technology.

For Q2 2025, MoonFox Alternative Data anticipates that NIO's revenue will increase by 13% year-over-year.

About MoonFox Data

MoonFox Data, a subsidiary of Aurora Mobile (NASDAQ: JG), is a leading alternative data provider delivering actionable insights to global financial institutions and investment firms. Trusted by top 50 funds, MoonFox leverages proprietary big data and advanced analytics to help clients uncover market trends and drive smarter decisions across China and emerging markets.