• Nio aims to deliver 150,000 vehicles in the fourth quarter, averaging 50,000 deliveries per month.
• Nio will launch the ES9 and the updated ES7 SUVs in 2026. Firefly will not roll out any new model in 2026.

Nio Inc (NYSE: NIO) released its second-quarter financial results today and subsequently held an analyst conference call.

Here are the key takeaways from the call, with the most recent placed at the top.

Starting this year, Nio has been building a new marketing paradigm designed to maximize the lifecycle value of new vehicles and achieve relatively stable sales volumes. However, significant challenges remain, and it will take time to determine whether this new marketing approach can effectively support highly competitive products like the Onvo L90 and Nio ES8.

Recently, the Chinese market has seen the launch of several great pure-electric three-row SUVs, including models from extended-range electric vehicle (EREV) manufacturers, which have made a significant impact on consumer perceptions.

The enhanced momentum of the Nio brand will boost sales of the Nio ET5, ET5 Touring, ES6, and EC6. In recent days, the company has seen positive signs.

The move to equip the Nio ET5, ET5 Touring, ES6, and EC6 with a 100-kWh long-range battery pack as standard has had little impact on transaction prices and gross margins, as many previous promotions have been withdrawn.

In 2026, Nio's quarterly R&D costs could range between RMB 2 billion and RMB 2.5 billion, ensuring the company's long-term competitiveness. This may be subject to change due to the development of new models.

In 2026, Nio has no plans to upgrade the Nio ET5, ET5 Touring, ES6, or EC6. Their intelligent systems have already been fully migrated to the new platform this year. Their competitiveness will remain strong for the foreseeable future. Nio may launch special editions for them, such as the Champion Edition.

Firefly will not have a second model next year.

Over the past year or two, Nio has made significant adjustments to its supply chain strategy, focusing more on building closer relationships with partners who believe in Nio's technological path and the company's long-term development.

The Nio brand's gross margin target is 20 percent, or even 25 percent. Onvo aims to achieve 15 percent gross margin as a baseline for higher targets. Firefly's gross margin target is around 10 percent.

Onvo had originally planned to begin deliveries of the L80 SUV this year, but due to production capacity constraints, this will not happen this year. As for whether the L80 will be launched this year, it remains undetermined.

In addition to the Onvo L80, the Nio brand will launch two large SUV models next year: the ES9 and the all-new five-seat ES7.

Over the past few months, Nio has been working with its battery partners to increase capacity.

The company aims to increase Onvo's production capacity to 25,000 units in the fourth quarter. For the Nio brand, the current challenge lies in the production capacity of the all-new ES8's 102-kWh battery pack.

Firefly's production capacity in the fourth quarter is expected to reach up to 6,000 units per month at its peak.

In the fourth quarter, Nio Inc aims to achieve a monthly production capacity of up to 56,000 vehicles to support its delivery targets.

Nio's fourth-quarter breakeven target is based on non-GAAP measures.

Nio aims to reduce its SG&A to sales ratio to below 10 percent in the fourth quarter.

Nio aims for a vehicle margin of 16 to 17 percent on in the fourth quarter to achieve its break-even target.

By the fourth quarter, the company aims to achieve a 20 percent gross margin on the L90 and ES8 models.

Nio Inc aims to deliver 150,000 vehicles in the fourth quarter, averaging 50,000 deliveries per month.

Nio aims to achieve a production capacity of 15,000 units for the L90 in October. The all-new ES8 will reach a production capacity of 10,000 units in October and 15,000 units by December.

Starting from the third quarter, Nio's sales growth will be driven by the implementation of its multi-brand strategy.

The strong sales of the Onvo L90 have boosted the momentum of the Onvo brand. In August, order intake for the Onvo L60 reached a new high for this year.

As of now, Nio has opened 176 Nio Houses and 416 Nio Spaces. Onvo's store count has reached 414.

In terms of service networks, Nio has established 388 service centers and 68 delivery centers.

Nio achieved significant cost optimization, with its operating loss narrowing by over 30 percent quarter-on-quarter in the second quarter.