NIO Inc. achieved breakthrough progress in profitability and operational efficiency, with its Q3 vehicle gross margin climbing to 14.7%—the highest level in nearly three years—while Q4 revenue and delivery guidance both set new historical records.
**Key Financial Metrics** - Q3 total revenue reached RMB 21.8 billion (USD 3.06 billion), up 16.7% YoY. - 87,071 smart EVs delivered, a 40.8% YoY increase. - Gross profit rose to RMB 3.02 billion, up 50.7% YoY. - Overall gross margin improved to 13.9%, up from 10.7% YoY. - Cash and equivalents, restricted cash, short-term investments, and long-term deposits totaled RMB 36.7 billion (USD 5.1 billion).
On November 25, NIO's latest earnings report revealed Q3 deliveries of 87,071 smart EVs (+40.8% YoY) and total revenue of RMB 21.8 billion (+16.7% YoY). The company’s three brands—NIO, Onvo, and Firefly—all achieved market breakthroughs, laying the foundation for a new growth cycle.
NIO expects Q4 deliveries of 120,000–125,000 vehicles (+65.1% to 72.0% YoY), with projected revenue between RMB 32.8 billion and RMB 34.0 billion (+66.3% to 72.8% YoY).
Following the earnings release, NIO's U.S. pre-market shares surged over 9%.
**Three Brands Drive Strong Delivery Growth** NIO’s Q3 delivery breakdown highlights the success of its multi-brand strategy: - Premium brand NIO delivered 36,928 units. - Family-oriented brand Onvo delivered 37,656 units. - Compact premium EV brand Firefly delivered 12,487 units.
NIO reported October deliveries of 40,397 vehicles. Cumulative 2025 deliveries reached 241,618 units, with total deliveries surpassing 913,182 units.
Founder, Chairman, and CEO William Li noted that the new ES8 set a record as the fastest RMB 400,000+ pure EV model in China to exceed 10,000 deliveries, while the Onvo L90 maintained its position as the top-selling large pure-electric SUV for three consecutive months. Firefly quickly gained leadership in the compact smart premium EV segment since its launch.
**Cost Optimization Boosts Profitability** Q3 vehicle sales revenue rose 15.0% YoY and 19.0% QoQ to RMB 19.2 billion. Despite lower average selling prices due to product mix changes, reduced per-unit material costs drove vehicle gross margin up from 10.3% in Q2 to 14.7%.
Other sales revenue grew 31.2% YoY to RMB 2.6 billion, driven by used-car sales, R&D services, and increased sales of parts, after-sales services, and energy solutions amid expanding user scale.
CFO Steven Feng attributed the QoQ improvement in vehicle gross margin to 14.7% and the three-year high in overall gross margin to sustained cost optimization and higher deliveries of high-margin models.
**Operational Efficiency Gains** Q3 R&D expenses fell 28.0% YoY and 20.5% QoQ to RMB 2.4 billion. Non-GAAP R&D expenses dropped 33.2% YoY to RMB 1.9 billion, reflecting lower personnel costs from organizational streamlining and reduced design/development costs as products and technologies progressed.
SG&A expenses rose 1.8% YoY and 5.5% QoQ to RMB 4.2 billion, remaining stable YoY with QoQ growth tied to marketing activities for new launches.
Operating losses narrowed 32.8% YoY and 28.3% QoQ to RMB 3.5 billion. Non-GAAP adjusted operating losses shrank 39.5% YoY and 31.3% QoQ to RMB 2.8 billion.
