NIO Inc. (NIO) has reported significant progress in narrowing losses while achieving record-high deliveries, revenue, and gross margins in Q3 2025. The company now sets its sights on achieving non-GAAP profitability for the full year of 2026.

**Financial Highlights** NIO delivered 87,100 vehicles in Q3, marking a 40.8% year-over-year increase. Revenue reached RMB 21.79 billion (+16.7% YoY), with gross margin climbing to 13.9%—a three-year high. Adjusted net losses narrowed by 38% YoY to RMB 2.74 billion.

CEO William Li emphasized the company’s shift toward "high-quality growth," prioritizing margin expansion over pure volume. The high-margin ES8 SUV is expected to drive Q4 profitability, with delivery guidance set at 120,000–125,000 units (+65.1–72% YoY) and revenue projected at RMB 32.76–34.04 billion.

**Strategic Shifts** Li acknowledged unexpected headwinds from the abrupt phase-out of China’s vehicle trade-in subsidies in October, which dampened consumer demand. However, NIO’s order backlog for the ES8 and its sub-brand Firefly has provided stability. The company will maintain pricing discipline, avoiding volume-driven discounts.

Looking ahead, NIO will focus on operational efficiency through its CBU (Core Business Unit) system and transparent supply chain initiatives. Li ruled out near-term diversification into robotics, reaffirming commitment to smart EVs.

**Market Trends** Pure-electric vehicles are gaining share in China’s premium segment (≥RMB 300,000), where NIO holds ~40% dominance. Its three-brand strategy—NIO (premium), Ledao (mass-market), and Firefly (global compact cars)—aims to capture broader demand. The Firefly model, set to debut in Singapore as NIO’s first right-hand-drive vehicle, will spearhead global expansion.

Li concluded: "We’re done with gimmicks—execution efficiency is now paramount. Every project must show clear ROI as we enter the ‘final phase’ of EV industry competition."