• Both the Onvo L90 and the new Nio ES8 are high-priced products with solid gross margins, Li said.
• Nio had initially hoped the new ES8 would achieve pre-order levels comparable to the Onvo L90, but current results appear even stronger.

Nio founder, chairman, and CEO William Li reiterated the fourth-quarter profitability target to employees in a new internal address, emphasizing the need to learn from Toyota's management practices to enhance operational efficiency.

"When I proposed earlier this year of achieving profitability in the fourth quarter, I suspect fewer than 1 percent believed it was possible," Li said during yesterday's about 90-minute company-wide internal address, according to a report by local media outlet LatePost today.

With about a month left to go before the fourth quarter arrives, achieving profitability remains challenging but attainable, Li said.

To reach profitability, there's a simple formula to focus on: Profitability = Sales Revenue × Gross Margin - Expenses, Li explained.

Both the Onvo L90 and the all-new Nio ES8 are products with high unit prices and solid gross margins, he noted.

Meanwhile, the Onvo L60, Nio ET5, Nio ET5 Touring, Nio ES6, Nio EC6, Nio ET9, and Firefly can all maintain steady delivery volumes, he said.

"For fourth-quarter sales revenue, I believe it's solid, and gross profit is also achievable," Li said.

He noted that while many potential customers recognize Nio's vehicles, services, and technology, at least 30-40 percent of their hesitation to purchase stems from concerns about whether Nio will fail.

"If we achieve profitability, these rumors will be dispelled. User confidence will strengthen, and many issues will resolve themselves," Li said.

"We have the opportunity to achieve profitability in the fourth quarter, and we must do so. We must win this critical battle. Everyone must give their all to make this happen," Li told employees.

Li emphasized that a company's success hinges on solid management, operational efficiency, and cost control capabilities.

The most worthy automotive company to learn from globally is Toyota, he said, citing its high operational efficiency and strong cost control.

"Toyota is our role model in management," he stated.

Li also said customer pre-orders for the third-generation ES8 SUV (sport utility vehicle) are strong. "We initially thought matching the Onvo L90's level would be good, but now it looks even better. "

Nio had previously been conservative in its plans for the new ES8 but is now ramping up production capacity, he said.

Supply chain partners are highly cooperative, with many having placed orders for the Nio vehicle themselves to secure early deliveries, Li said.

Production of the new ES8 is currently on track, with no cause for concern, Li stated.

Nio unveiled the third-generation ES8 and began accepting pre-orders on August 21, with its official launch scheduled for Nio Day 2025 at the end of next month.

The L90, the flagship electric SUV of sub-brand Onvo, was launched on July 31 and began deliveries on August 1.

Yesterday, Onvo president Shen Fei said at the opening day briefing of the 2025 Chengdu auto show that the brand achieved record deliveries in August, with L90 deliveries reaching 10,000 units.

Nio will release its unaudited second-quarter financial results before the US market opens on Tuesday, September 2. During the second quarter, it delivered 72,056 vehicles, within its guidance range of 72,000 to 75,000 units.