Summary of Core Information from NIO’s Q3 Earnings Call

NIO will launch a sedan based on the NT 2.0 platform at this year’s NIO Day. The fifth vehicle will also be a sedan.
Li Bin stated that the core of NT 2.0 is a mass-produced autonomous driving system that is industry-leading. More details will be announced at NIO Day.
NIO considers two critical factors in autonomous driving: “how much time it frees up for users” and “how many accidents it prevents.” While LIDAR has its own value, there are cost issues to consider, and a balance is required. No matter how much the camera and computing power develop, LIDAR is still a significant supplementary component.
Starting from the second generation, there will be full-stack algorithm and technical capabilities for autonomous driving, and NIO has recently increased the number of data and algorithm team members.

After the release of BaaS in August, the acceptance rate of users has been increasing every month. In November, the new orders of BaaS have reached 35%, better than expected.
NIO’s monthly production capacity will increase to 7,500 vehicles in January next year.
This year, NIO has many orders that will need to be fulfilled in the first quarter of next year.

The main reasons for the improvement in gross margin are as follows: the higher proportion of ES8 sales raised the average selling price by 10,000 yuan, and the cost of vehicle materials has decreased by 7,000 yuan (primarily due to the reduction in battery and motor prices).
There is still some room for long-term cost reduction in the scale of production and manufacturing, but it is relatively limited.

NIO officially enters the European market in the second half of 2021.
In the fourth quarter, NIO will have 120 million yuan in income from double points.

Source: NIO Official

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.

NIO’s two future models are both sedans, with BaaS users accounting for 35% of November orders. The planned capacity for January next year is 7,500 vehicles.