Jeff Chung's questions to NIO (NIO) leadership • Q2 2025
Question
Jeff Chung from Citigroup inquired about the production capacity ramp-up and delivery targets for the ES8 and L90 models, asking if the monthly run rate could exceed 55,000 units by December. He also asked for more detail on the gross profit margin trends for the second half of the year, including specific targets for vehicle, non-vehicle, and the new models' margins.
Answer
Management, via a moderator, confirmed strong demand and outlined a plan to reach a combined monthly supply capacity of 30,000 units for the ES8 and L90 by year-end. The overall Q4 delivery target is an average of 50,000 units per month. Regarding margins, they projected the Q4 vehicle gross margin to reach 16-17%, with the L90 and ES8 models individually targeting a 20% gross margin in Q4. Other sales margin is expected to be around breakeven, excluding inconsistent revenue from technology services.