Nio CEO says ‘confident’ in delivery volume guidance provided

Nio CEO William Li said on the company’s Q2 call, according to a transcript: “So starting from June and July and August, we have taken a more active manner in improving our sales capabilities. And with that, we hope that the company will be able to support the new orders of 30,000 units per month that will be contributed by our sales network as well as the personnel increase. So that by the end of September, we will be able to realize that target. Of course, it takes time for us to really train the personnel and also to find the locations. So we will have that initial capability ready by the end of September, and then the real effect will kick in from October. That is our existing plan for the improvement. This is also why starting July and August, we’ve been taking some active measures and actions in expanding our sales network and touch points, especially in lower-tier cities where we don’t have a full-fledged facilities or stores, we hope to really secure and hire experience and season salespersons who have their networks and user bases already to help us with the sales test. And regarding your second question, in July, we have delivered more than 20,000 vehicles. And as shown by our guidance, our delivery volume in August and September are lower than that in July. This is mainly because by the end of July, we have announced the adjustment to our Power Swap user benefits before users enjoy or are entitled to or swaps per month. But starting from August 1, all the new orders are not entitled to free swaps anymore. This also helped us to pull ahead some orders or users with strong demand for Power Swap in July, and this has also affected the delivery volume in July. In terms of the August, we believe that it will take some time for the order momentum and intake to be back to the normal track. But in the meantime, in August, we’ve also witnessed a new high of the numbers of test drives and leads. Average speaking, during the weekends, we have more than 10,000 test drives. This represents a significant growth from the past month. And in the meantime, we also understand that it will take some time for the test drive to be truly converted into orders and we will wait for that. But over speaking, we are very confident in stabilizing the order intake as well as the delivery volume. In the meantime, we also need to understand the external challenges, especially the challenges and the pressure from the macroeconomic environment. So our fair cost and guidance have also considered that those external factors. But overall speaking, we are confident in the delivery volumes we provided.”