Electric Shock: NIO’s Surging Deliveries Paired with Growing Losses – What It Means for the EV Giant

NIO had a huge year in 2024, delivering more cars than ever before. The Chinese electric vehicle (EV) company saw its sales jump nearly 40% year-over-year, proving that demand for its sleek, tech-packed EVs is stronger than ever.

But here’s the problem—NIO is still losing money, and those losses are only getting bigger. The company just reported a much wider fourth-quarter loss, sparking concern among investors who were hoping that higher sales would finally bring it closer to profitability.

On the bright side, NIO still has plenty of cash in the bank, which gives it the financial cushion to keep growing. But the big question remains: Can it turn things around before the losses spiral out of control?

Record-Breaking Deliveries in 2024

Let’s start with the good news—NIO is selling a lot of cars. In December 2024 alone, it delivered a whopping 31,138 vehicles, a 72.9% increase from December 2023. That strong momentum pushed total deliveries for the year to 221,970—marking a 38.7% jump from the previous year.

The company’s luxury EVs continue to perform well, but a big part of this success came from its newest model, the ONVO L60. This family-friendly EV hit the market in late 2024 and has been flying off the shelves, with over 20,000 units delivered in just a few months.

Despite Strong Sales, Losses Keep Growing

Here’s where things get tricky. Even with all these deliveries, NIO still isn’t making a profit. In fact, its losses are getting worse.

The company reported a net loss of RMB 7.12 billion ($974 million) for Q4 2024—32.5% higher than the same quarter in 2023. Revenue for the quarter reached RMB 19.7 billion ($2.7 billion), which is a 15.2% increase from last year but still fell short of Wall Street’s expectations.

For the full year, NIO pulled in RMB 65.73 billion ($9.01 billion) in revenue, up 18% from 2023. But its total net loss for the year ballooned to RMB 22.66 billion ($3.11 billion). That’s a lot of money going out the door.

Margins Are Improving, But Still Not Great

One small silver lining? NIO is getting slightly better at making money on each car it sells. Its vehicle margin—the profit left after production costs—stood at 13.1% in Q4, an improvement from 11.9% the year before.

That’s progress, but NIO still lags behind competitors like XPeng and Li Auto, both of which have figured out how to turn higher profits on their vehicles.

NIO’s Cash Reserves Keep It Afloat—for Now

The good news is that NIO isn’t in immediate financial trouble. As of December 2024, it had RMB 41.9 billion ($5.7 billion) in cash and cash equivalents. That gives the company enough breathing room to keep investing in its future—whether that’s expanding its battery-swapping stations, opening new stores, or rolling out new models.

The ONVO L60 Is a Game Changer

A big reason for NIO’s optimism is the ONVO L60, which has been a runaway success. Designed as an affordable, family-friendly EV, it quickly gained traction after launching in September 2024. In just three months, it racked up over 10,000 deliveries. By the end of the year, that number had doubled.

What’s making the L60 such a hit? Aside from its competitive pricing, it’s also compatible with NIO’s battery-swapping technology, allowing drivers to replace their depleted battery in minutes instead of waiting for a charge.

To support this model’s growth, NIO expanded its charging and battery swap network. By the end of 2024, more than 1,000 power swap stations were operational, making it easier than ever for L60 owners to keep moving.

Expanding Across China—But at a Cost

NIO has been working aggressively to grow its presence across China. By the end of 2024, it had 300 ONVO stores in 82 cities, plus 317 authorized service centers covering 172 cities.

While this is great for reaching more customers, it also means higher operating costs—one of the key reasons why NIO’s losses continue to mount.

Investors React to Widening Losses

After NIO announced its Q4 earnings, its stock took a hit, dropping 3.6% in premarket trading. Investors weren’t thrilled to see losses growing faster than expected, especially as NIO ramps up spending on new sub-brands like ONVO and Firefly.

Analysts say NIO’s strategy could pay off in the long run, but in the short term, it’s making it harder for the company to reach profitability.

What’s Next for NIO?

Looking ahead, NIO expects even more growth in the next quarter. The company is forecasting a 25% to 30% increase in revenue and a 36% to 43% jump in vehicle deliveries.

To stay competitive, NIO is doubling down on battery-swapping infrastructure, improving its manufacturing processes, and rolling out new models. The big challenge now is turning this rapid growth into actual profits.

For now, the company has the cash reserves to keep pushing forward. But investors will be watching closely to see if NIO can balance its big ambitions with better financial discipline.