Yuqian Ding's questions to NIO (NIO) leadership • Q2 2025
Question
Yuqian Ding of HSBC asked about the potential for internal cannibalization of existing models like the ES6 and L60 from the attractively priced new ES8 and L90. She also requested a more detailed breakdown of the company's operating expense reduction targets and initiatives.
Answer
Management, via a moderator, responded that the new models are having a positive halo effect, with the L90's launch boosting order intake for the L60 to a new high. They believe the clear pricing system will benefit all models. On OpEx, they reiterated the goal of reaching non-GAAP breakeven in Q4 by controlling R&D expenses to within RMB 2 billion per quarter and reducing the SG&A-to-sales ratio to around 10%.