"Ledo, I'm sure you're all familiar with it by now."

"As NIO's second venture, the burden on the Ledo brand is not light, and it often exudes a sense of urgency that 'success is the only option, failure is not an option.'"

""To be honest, that's exactly the case."

"NIO is facing significant challenges in its core business, and the future of Ledo is uncertain. On one hand, its positioning is slightly vague and not unique; on the other hand, NIO took a risky move by launching its first sub-brand before its main brand had solidified its foundation."

""Success or Bust"

"Indeed, as the title suggests, Ledo's success is crucial for NIO – failure is not an option."

"In today's highly competitive Chinese automotive market, especially for new energy vehicle makers like NIO with a weak foundation and low brand recognition, preserving sales volumes and retaining customers has become a pressing issue that must be addressed."

"The introduction of Ledo is intended to address this issue – by exploring the lower end of the market."

""In other words, Ledo's emergence is a strategy to spread production costs on a larger scale, ultimately helping the company recover and turn a profit."

"I understand this strategy. After all, once a sufficient number of vehicles are sold, the 'scale effect' can help spread costs and achieve profitability."

"However, many automakers are currently selling cars at a loss, so how can we talk about the scale effect? If a car is already sold below cost, and each vehicle incurs a loss, what's the point of selling more? Moreover, as the scale expands, issues like slow information transmission, information distortion, and bureaucratic management can lead to even more problems."

""Behind NIO's glamorous facade lie hidden concerns. Selling cars at a significant loss while simultaneously reporting robust sales is not a sustainable model, especially in the current cooling capital market. From a market perspective, while NIO has continuously introduced new products over the years, each new vehicle launch has been met with anticipation, but the actual market response has been lukewarm. This suggests that Li Bin doesn't have many cards left to play."

"Therefore, NIO and Li Bin urgently need a hit product. Ledo's success is crucial, but can it really deliver? At least for now, it's hard to say."

""Ledo L60: A High-Stakes Gamble"

"When I say that the Ledo L60 is a high-stakes gamble, I'm not speaking idly."

"If the Ledo L60's specifications are not high enough, it will struggle to compete in the fiercely competitive market. Moreover, in the current automotive landscape, it's rare for both the parent and sub-brand to thrive simultaneously. But let's look at it from another angle."

"NIO EC6"

"Ledo L60"

"If the Ledo L60's specifications are high, it will inevitably overlap with NIO's main brand. Currently, its biggest competitor is likely NIO's EC6. With a 60kWh battery, the L60 might be priced around 250,000 yuan. While it lacks a dual-motor setup, it's 100,000 yuan cheaper, essentially pitting NIO against itself."

"Conclusion"

"In summary, it's clear that NIO's resources are limited, and its focus is too dispersed . Launching a sub-brand at this juncture is risky. The notion that 'success is the only option, failure is not an option' seems more like an obsession. To put it bluntly, would you choose a SUV starting at around 200,000 yuan from a sub-brand of a new energy vehicle maker? After all, even a 'generic' electric car like the BMW i3 can be had for slightly over 200,000 yuan."

"Lastly, while NIO is optimistic about Ledo competing with the Tesla Model Y, I must say, 'Everyone wants to kill the Model Y, but in the end, everyone gets killed.'"