Nio Q4 earnings call for live updates: Alps brand to be unveiled in Q2, first car launched in Q3

(Image credit: CnEVPost)

Nio (NYSE: NIO) today announced fourth-quarter 2023 financial results and held an analyst call afterwards.

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

From the current assessment, Alps can achieve the previously mentioned cost levels with a reasonable volume, but not with a particularly large delivery volume.

For a manufacturer, 10,000 units per month is a reasonable amount.

Nio's quarterly R&D investment in 2024 will be approximately RMB 3 billion, consistent with 2023.

Nio's charging business is largely break-even, and installation of 640-kilowatt ultra-fast charging stacks will begin in the near future.

Nio ET9 will come with a 5C super fast charging battery, Nio is focusing more on battery life.

A car can have a lifespan of up to 15 years, so battery life is important, and Nio has done a lot of research in this area over the past few years.

Nio has been addressing the issues of battery safety, charging efficiency, and ease of charging through its battery swap network over the past few years.

The company's next major priority is battery life, which it has done a lot of research into over the past few years.

The really important thing that's now becoming more apparent is battery life, especially calendar life.

Battery replacement helps preserve battery life and is a great final solution to extend battery life through operational means.

Nio will focus on the Chinese market for now but will not stop exploring international markets. The company will enter some new countries this year, such as the United Arab Emirates.

Nio will stick to direct sales in China and use a more flexible approach focused on ROI in overseas markets. The company does not rule out partnership with third parties.

Nio will have Alps brand cars this year and lower-priced models from another new brand next year. Nio will take these matters into consideration in its strategy to enter other markets.

Starting later this year, Nio will sell models from both brands.

Nio-branded models, including those in the planning stage, are focused on the premium segment of the market. There will be no cheaper models from the flagship brand than the Nio ET5.

Nio's flagship brand will care about gross margins and will not join the price war. Nio's second brand will prioritize deliveries over gross margins.

The second brand is able to leverage Nio's investment in R&D and infrastructure in the smart and electric sectors, rather than starting from scratch.

Nio's second brand is targeting the domestic market, which will have more competition.

The Alps brand will have different products for different families and will be able to compete accordingly.

The first Alps model will be a direct competitor to the Tesla Model Y, as its BOM (bill of materials) cost is about 10 percent cheaper than the Tesla Model.

The second car for Alps will be an SUV for large families, which will be on the market next year.

Alps' third car is already under development, it's too early to say.

Nio is confident that monthly sales will return to 20,000 units.

Nio's mass-market-oriented brand, codenamed Alps, will debut in the second quarter. The first model will be launched in the third quarter and mass deliveries will begin in the fourth quarter.

The Alpine will have a separate sales network, but aftersales will use part of the Nio network.

Nio's 4th generation battery swap stations are compatible with different brands of vehicles, and most of the stations to be added this year will belong to a common network.

Alps models will use the shared battery swap network, and Nio models will be able to use these locations as well. It's like public and private clouds.

Nio's Q4 Earnings: Revenue beats estimates, gross margin falls short