Weilai lost 200,000 yuan when it sold a car! It lost 76.4 billion yuan in 5 years, and netizens panicked...
For every car sold by NIO, it lost 200,000 yuan;
Every time a car owner buys a NIO car, it is equivalent to earning 200,000 yuan.
It's not a joke.
Today's NIO, although it has been polished in the automobile market for many years, has become a formal car manufacturer with initial large-scale production capacity, but it still has not broken even.
Recently, it was reported that from 2018 to the first half of 2023, NIO has lost a total of 76.4 billion yuan in the past five and a half years.
And if you split the 76.4 billion yuan, you will also find that in just three and a half years, NIO's cumulative net loss is as high as 30 billion yuan. Among them, in the first half of 2023, the net loss will exceed 10 billion. You must know that even Evergrande Automobile, which has a cumulative sales volume of less than 10,000 yuan, has a net loss of only 6.865 billion yuan in the first half of the year.
However, that's not all... In the past 2022, NIO's annual net loss has also reached 14.437 billion yuan, of which the net loss in the fourth quarter was 5.786 billion yuan, which was the highest loss last year.
If it is calculated according to the delivery volume of 122,500 vehicles, it is almost a loss of nearly 120,000 yuan if you sell a car. This figure is quite scary for an automobile company, and some people even joked: "Buying a NIO car is equivalent to earning 200,000 yuan." ”
For a time, the news of NIO's loss also became a hot topic on the Internet. Weilai, which was once in the limelight, how did it go to the trough of life step by step, and even sell and lose money every year, so that netizens ridiculed "The loss of 76.4 billion, I don't know if Weilai panicked, anyway, I listened to it panicked". Now, let's talk about it.
It is said that sales are linked to sales, but in fact, from the first strand of this matter, from the market level, NIO does not have outstanding performance in terms of sales at present. In October this year, NIO delivered 16,000 vehicles, a slight increase of 2.77% month-on-month.
However, Li Bin had previously said: "I am confident that the sales volume will reach 20,000 units per month in the second half of the year", but the result failed to touch the 20,000 mark. According to comprehensive data, NIO delivered a total of 126,000 new vehicles from January to October, just half of the annual delivery target, and there are less than two months left in 2023.
Pushing forward, in August this year, NIO sold a total of 1.9 new cars, and by September, NIO only delivered 15,000 units, plus the sales in October did not reach 20,000, and even in the October sales of new energy vehicle companies in 2023, NIO not only lagged behind the "old rival" ideal, but was even overtaken by Deep Blue.
Data source: Lieyun▲
Throughout the entrepreneurial history of NIO, it only broke through the monthly sales of 20,000 units in July this year, and then fell to the level of monthly sales of more than 10,000 units. This makes people have to sigh that the new domestic car-making forces are really surging, the original "Wei Xiaoli" has a big reversal of the situation, the ideal of ranking the third has successfully ascended, becoming the boss of the new domestic car-making forces, and Weilai, which was the first to sell more than 10,000 yuan, is now in a precarious position.
Data source network▲
However, what is even more anxious is that seeing that sales are not rising, the losses have not stopped. As mentioned at the beginning, NIO has lost 76.4 billion yuan from 2018 to the first half of 2023, and in terms of breakdown, NIO also lost 10.8 billion yuan in the first half of this year, double the loss of 4.5 billion yuan in the first half of 2022, and the company's profit prospects are not optimistic.
Especially since the sales volume in October did not continue to be at a high level in the third quarter, the news about NIO "entering the winter" and falling into huge losses has come and gone. For NIO at present, the way out if it wants to survive is nothing more than to sell more cars and spend less money. There is no need to talk about selling more cars, which costs less money, and NIO finally decided to save money by laying off employees.
Then in November of this year, layoffs were put on the agenda. NIO announced that it would lay off 19% of its workforce, involving about 2,700 employees. This is the largest layoff since the establishment of NIO, and as soon as the news of the layoff came out, it immediately attracted widespread attention and controversy.
Along with the "layoff theory", a series of remarks such as #NIO sold a car and lost 200,000#, #NIO will go out of business and be acquired# appeared on the Internet. In the face of this surging public opinion, Qin Lihong, president of Weilai, finally came forward to refute the rumors, saying that Weilai will not go out of business, and there is no possibility of bankruptcy.
But it can be seen with the naked eye that even if NIO will not go bankrupt, it is obviously a little tight compared to the other two ideal Xiaopeng. Especially in the past October, Ideal broke through the 40,000 mark, and Xpeng also exceeded 20,000 for the first time, setting a single-month delivery record, which put a lot of pressure on NIO.
Although Li Bin has said that he will not lay off employees, it is the best way for NIO, which urgently needs to save resources and improve efficiency.
Here is a rough estimate of how much money can be saved by laying off 2,700 employees? Taking the annual salary of 26,000 employees, the salary is 11.2 billion yuan in a year, and a reduction of 10% of employees means that it can save about 1 billion yuan in expenses every year. Jiguojun still remembers that in 2022, NIO will pay 11.2 billion yuan in wages annually, but he didn't expect that now he has no choice but to lay off employees in order to save money, which is embarrassing.
However, coinciding with the recent "Golden Nine and Silver Ten" sales season, new forces such as Ideal, Xiaopeng and even Wenjie have achieved growth, on the other hand, Weilai's continuous sales decline, although layoffs and cost reduction, but the capital market obviously has little confidence in Weilai, so on November 6, that is, the first trading day after Weilai confirmed the layoffs, the US stock price fell by 3.16%, and hit a new low in 3 years on November 13.
In a few days, it will be the 9th anniversary of the establishment of NIO, but because of the loss, the overall atmosphere of NIO now seems to have returned to the dying state of 4 years ago. Although Qin Lihong, president of NIO, threatened that NIO would not go bankrupt, for companies, once life and death are put on the table, it will be very dangerous.
To put it more bluntly, the current NIO seems to have entered a dead end.
In particular, the continuous losses have made this former "benchmark of new forces" lose its former sharpness, which should be difficult to accept for NIO, which is willing to spend money. In 2021, NIO's annual R&D expenditure on automobiles will be 4.6 billion yuan, and in 2022, NIO's R&D expenditure will reach 10.84 billion yuan.
Previously, Weilai Qin Lihong publicly stated that Weilai would basically maintain 3 billion yuan of R&D investment every quarter in the future. I have to say that among the new forces, NIO is the one that can spend the most money.
According to the financial report, in the first half of the year, NIO's main "money-burning" projects included production costs, R&D expenses, marketing and administrative expenses, with a total of 30.9 billion yuan, a year-on-year increase of 20.67%.
In addition to its core business, the NIO brand has also invested heavily in sub-brands, batteries, chips, mobile phones and other related businesses, of which the investment in new businesses is about 1 billion yuan per quarter, reaching a scale of 4 billion to 5 billion yuan for the whole year.
In the past two years, NIO has successively invested in new projects such as batteries, chips, and mobile phones, and expanded its original business segments such as intelligence, energy, and user-related businesses, with a staff scale of about 30,000 people, making it the largest new car-making force.
However, NIO did not devote itself to car manufacturing, but actively invested in the already saturated Red Sea industry such as mobile phones in the case of its own losses. Previously, Li Bin revealed that NIO's mobile phone business team currently has about 600 people.
With a large number of personnel investment, NIO's first smartphone product NIO Phone is indeed on the market, with a starting price of 6499 yuan, but its Snapdragon 8 gen 2 chip, Samsung's AMOLED display and other configurations, only benchmark Xiaomi 13 standard version, but the latter is only 3999 yuan, with a price difference of 2000 yuan, just because there is one more function to cooperate with Weilai? It is hard to imagine that in addition to Weilai owners, who else will have a reason to buy this mobile phone.
But even for NIO owners, we can calculate an account. As of the end of August this year, the cumulative sales of Weilai cars were about 383,900 units, and even if half of the owners bought Weilai mobile phones, the sales volume was less than 200,000, which was less than a fraction of that of other mobile phone manufacturers.
What's more interesting is that even Li Bin, the founder of Weilai, said frankly that Weilai mobile phones will not push advertisements because they can't sell many units. Looking back now, NIO's new attempt at "crossover" is more like a self-congratulation. Therefore, in the eyes of the public, NIO is like "eating in the bowl and looking at the pot", and the main business of automobiles has not yet achieved obvious results, but the "stall" has been spread so big.
But in fact, not only the mobile phone business, but also the "main business" of automobiles, NIO can also invest in blood. Although NIO has not been established for a long time, there are many models under its umbrella, with a total of 8 models currently on sale, which also means that more investment will be made in research and development.
In addition, the battery swap service is also a major feature of NIO, but the cost of this service is extremely high, mainly due to the large amount of capital investment required to replace the battery. Some relevant institutions have estimated that the cost of building a second-generation battery swap station is about 2 million yuan, and the cost of the third-generation battery swap station is about 3.6 million yuan.
It can be said that the battery swap station has brought unique competitiveness to NIO, but it has also brought greater cost investment pressure. At this year's Shanghai Auto Show, Qin Lihong, president of NIO, said that the cost of a single battery swap station is about 3 million yuan, and if this is calculated, the fixed cost investment of all 2,000 battery swap stations of NIO will reach 6 billion yuan.
Previously, it was reported that in the net loss of 14.437 billion yuan of NIO in 2022, the construction cost of the battery swap station is one of the largest expenditures.
Therefore, in the eyes of many people, the high cost of building a battery swap station for NIO is the "culprit" of the aggravated losses. Not only the outside world is skeptical, but even the employees within NIO believe that the investment in battery replacement is too large and the return cycle is too long, which will drag down the performance. Like before, Musk directly gave up the battery swap business, which shows that this is not a promising business.
But Li Bin's attitude is very resolute, and the battery swap station cannot be abandoned, but in the face of the current dilemma, NIO finally no longer fights alone. No, a few days ago, there was news that Weilai was going to cooperate with Chang'an, and this cooperation can be described as injecting a shot in the arm for Weilai, and the burden of battery replacement finally does not need to be borne by Weilai alone.
But then again, NIO's opening up of the battery swap business also has potential difficulties. Not to mention that not all car owners accept battery swapping, now with the advancement of automotive battery technology, models with a range of more than 1000 kilometers have appeared one after another, and the vehicle charging speed will also increase, which will further reduce the demand for battery swapping.
Frankly speaking, with the continuous progress of battery technology and the improvement of charging facilities, the differentiated advantages of battery swapping services are gradually disappearing. Maybe the addition of Chang'an may be the key to the breakthrough of NIO's battery swap system, but this is also a later story.
And the battery swap service is not all that NIO burns money. Throughout the development of NIO, in addition to spending money on R&D, NIO is also willing to invest in marketing. According to statistics, Weilai's marketing expenses last year reached 10.537 billion yuan, a year-on-year increase of 53.2%, and Weilai sold only 122,500 vehicles last year, and the marketing expenses of each car were as high as 86,000 yuan after apportionment, becoming the most willing to spend money on marketing in the current market. However, it is not that the more investment, the higher the sales, looking back at the car sales in October this year, Deep Blue catches up with Weilai, which is also quite dramatic.
On other car companies, it may save sales by cutting prices. Indeed, since Tesla's price cut at the beginning of the year, there have been car companies in the domestic new energy vehicle market to follow up with price cuts, and even BMW, Audi, Volkswagen, Toyota, including fuel vehicles and pure electric vehicles, have successively given large promotional preferential policies, once setting off a "crazy involution" year.
However, as a self-proclaimed high-end car brand, NIO believes that this kind of price reduction will cause damage to the brand image, which will have a great impact on the long-term development of high-end brands. Therefore, in the face of such a competitive market, NIO has always chosen to stay out of the matter, but the result of others not rolling you can be imagined.
In general, whether it is the construction of battery swap stations, cross-border investment in batteries and mobile phones, or a large number of brand advertising, NIO is facing huge financial pressure, which ultimately leads to a tight capital chain. However, with the intensification of competition in the new energy vehicle market, these investments have also become the key to NIO's "dead end".
In fact, not only Weilai, but also the current new energy vehicle market, the competition has entered a more stalemate state, especially with the trend of intelligent automobiles, blindly fighting a "price war" is no longer the best choice to attract consumers. It's like building a mobile phone, and the eye-catching configuration is the key to victory.
Therefore, now more and more car companies are seeking more innovation and breakthroughs, and Lizhi has created distinctive products to attract consumers, such as intelligent driving, which shows a completely different differentiated personalized innovation technology from competitors, providing consumers with a new driving experience, which is eye-catching.
The difference with the innovation of the driving experience is that the ideal L9 released some time ago focuses on the sitting experience, in the limited riding space, to create a refrigerator, color TV, large sofa comfort configuration, it is said that many people were directly pinched after the test drive.
In fact, NIO has also been touting technological innovation and intelligence, and has also invested heavily in R&D to explore technologies such as intelligence and networking. Take mobile phone manufacturing as an example, although many people complain, NIO's original intention is also to complement mobile phones and automotive products to form a complete smart travel ecosystem. In other words, NIO's mobile phones can be seen as part of its strategic layout in the field of smart mobility, and in this way, it can improve user stickiness and satisfaction.
But as a result, this phone, which is only aimed at NIO owners, did not make any splash.
But its R&D costs are really there, and a team of a few hundred people means that at least hundreds of millions of yuan in labor costs will be used, and this includes other types of costs. In other words, if the mobile phone cannot be sold to share the R&D expenses, then it will definitely not be profitable to sell expensive.
Going back to it, NIO has innovation, but it has not been in the right direction, and what users want is not to equip the car with the so-called "large key", but to experience the function of the car itself. Perhaps aware of this, in the "user face-to-face" event held by Weilai Automobile recently, Li Bin publicly revealed the product planning of Weilai's sub-brand "Alps", saying: "Whatever model sells well, what model will be done, and which car will sell well, will do whom." ”
At the same time, he said that the definition of Alps's home products is: comfortable and easy to use, large space, refrigerator, color TV, large sofa. It's hard to believe that this is from the mouth of the NIO brand, which has always adhered to "high-end and long-termism", which fully shows that NIO has changed a lot from the inside out in 2023.
Looking back, in "Wei Xiaoli", Weilai is the brand with the highest starting point and the highest tonality, so much so that Weilai has adhered to the model of heavy asset battery swap from the beginning, but this construction of a large number of infrastructure facilities is contrary to the concept of "careful budgeting" of new car-making forces. In addition, NIO is constantly involved in other products, distracting energy and funds, and even the main business of making cars is maintaining high-end prices without significant price reductions and product innovation, all of which may have become the "straw" that overwhelms NIO.
Of course, now NIO is not completely in a desperate situation. Again, now NIO has only one way, that is, to launch more competitive products, as long as the sales of the car are high, all the pressure of public opinion and capital can be easily solved. So, let's see how NIO "saves itself" and returns to the leading position.