At a year-end media event in Shanghai yesterday, Nio (NIO) CEO William Li said the company aims to improve efficiency, reduce costs, and grow sales in 2025. Also, he expressed disappointment with the Chinese electric vehicle (EV) maker’s 30-40% growth over the last three years.
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Li reaffirmed Nio’s goal to double its sales in 2025, targeting around 440,000 units. However, he pointed out that the main Nio brand is likely to see moderate growth in 2025 compared to 2024. Meanwhile, the lower-cost brand, Onvo, is expected to sell an average of 20,000 units per month in 2025.
Further, the company expects its new premium small car brand, Firefly, to drive sales in the thousands of units per month. Firefly is set to launch on Nio Day 2024, scheduled for December 21, with initial availability in China and Europe.
Nio’s New Plant to Boost Production Capacity in 2025
During the event, Li disclosed that Nio’s third manufacturing facility in China is expected to begin operations in the third or fourth quarter of 2025. This new plant will have a single-shift capacity of 100,000 units per year and will produce both Nio and Onvo-branded vehicles.
Investors should be aware that the plant is located in Huainan, China, where Nio operates two of its existing factories. With the new plant, Nio’s total annual production capacity will increase to one million vehicles. This expansion will help the company meet growing EV demand and strengthen its global market position.
Is NIO a Buy, Sell, or Hold?
On TipRanks, Nio has a Moderate Buy consensus rating based on six Buy, four Hold, and two Sell ratings assigned by analysts in the past three months. At $5.99, the average NIO price target implies 30.5% upside potential. Shares of the company have declined over 49% year-to-date.
