NIO Inc. · Q2 2026 call

In terms of the power network, at present, the company has 4,123 Power Swap Stations and 30,294 Power Chargers and Destination Charging worldwide.

For the ES8, in August, we delivered around 10,099 units. In 11 months, we have delivered more than 140,000 ES8. In September, it is going to witness its next milestone of 150,000 deliveries […] But for the ES8, it may be the first model that is breaking away from this market trend.

around three quarters of the ES9 users are actually from non-existing NIO users, from users outside of the NIO user community

If we further look at the numbers by the Insurance Association, in Q2, the average selling price of the NIO brand was RMB 406,000, far higher than the prices of Mercedes-Benz, BMW, and Audi. It is ranking the first among all the mainstream premium brands. In July, the average selling price of the NIO brand was over RMB 430,000.

If we look at the cost in Q2 as well as the cost in late Q4 last year, the average cost impact or cost increase is around RMB 14,000 per car.

we expect the material cost to continue to increase by another RMB 2,000-RMB 3,000. But we will also take a series of countermeasures to mitigate this risk. In Q3 and Q4, we hope to still stabilize our vehicle growth margin at the same level as in Q2.

our ES9 and ES8 are still seeing pretty stable demand, and also with significant market share in their respective segment. These two models, they are also making major contribution in our product mix as well as vehicle margin, as both of them have over 20% vehicle margin.

In the first half of this year, our sales volume increased by 67% year-over-year, where our total revenue increased by 86% year-over-year. That is faster than our volume increase. In terms of our gross profit, it increased by 282% year-over-year, much faster than the growth of our revenue.

As mentioned also in Q2, the impact on the vehicle is around RMB 14,000 on average, where compared from late last year, in the second half of this year, such impact will continue to enlarge by another RMB 2,000 to RMB 3,000. Which means that in the second half of this year, compared with Q4 last year, our cost structure will be burdened by another RMB 16,000 to RMB 17,000. But even against this backdrop, we still aim to achieve a steady growth in our gross profit.

For this year, we expect our full year CapEx to be relatively flat from last year, roughly RMB 6 billion to 7 billion per year. Such investment is mainly used for basically CapEx, research and development, as well as the rollout of our sales and the service network, not much investment going into the capacity and also factory side.

With increase in sales volume as well as ongoing efforts in improving our operating performance, we expect that in Q3 and Q4, we can maintain the positive free cash flow as well as operating cash flow.

right now for the NIO users and ONVO users, we offer them a five-year complimentary subscription to our smart driving capabilities and systems. […] For the used car users, they are paying 380 RMB per month for the smart driving subscription, where we now see a penetration rate of around 20% among these used car users.

For per station cost, if we excluding batteries in the station as well as all the costs related to the high voltage power supply and the energy preparation, if you only look at the station itself, it is around 1.4 million RMB per station. That is around 100,000 RMB cheaper than the fourth generation.

we will basically be staying flat with our R&D expenses non-GAAP around RMB 2.5 billion […] But for this year, it will be roughly RMB 2.5 billion per quarter in terms of the R&D investment.

NIO is supporting his business as a strategic shareholder. In the meantime, he will still be the head of our smart driving department […] through this startup by Mr. Ren, we can also keep tracking of the latest developments in the physical AI and embodied intelligence without diluting our focus affecting our P&L.

We expect that the passenger vehicle market to be able to recover in Q4 this year. With that, our target for Q4 is achieving an average volume of over 40,000 units per month. And for the mid and the long term, with our product lineup as well as our sales and service network coverage, we expect our annual volume growth to be around 40%-50%.

we've been taking a very stable pricing strategies for our products. We didn't really lower the price in exchange for the sales volume. Secondly, on the supply side, we've been working with the supply chain to take a series of optimization measures, VA/VE efforts as well as commercial negotiations. With all these efforts combined, we managed to stabilize our vehicle margin at 18.5% in Q2.

if we look at the SG&A as percentage to the sales revenue in the first and the second quarter under the non-GAAP standard, it's around 13% in the first half. […] that one off impact is roughly RMB 500 million, majorly happened in Q2 […] In terms of the second half outlook, in terms of the SG&A expenses as percentage to the sales revenue under the non-GAAP standard, we expect it to be around 10%-11%.