Currently, there are three automotive startups that are profitable: Li Auto, AITO, and Leapmotor.

As for the fourth potential profitable entrant, many speculate it will be either Xiaomi or Xpeng.

Frankly, if this speculation proves true and Xpeng also attains profitability, NIO could find itself in an awkward position. Among the new players, "NIO, Xpeng, Li Auto" were once the three flagship enterprises.

Li Auto has already made it to shore, with a profit of up to 8 billion yuan in 2024. Since the launch of MONA, Xpeng has also grown rapidly, with monthly sales even surpassing Li Auto at one point.

But what about NIO? The current situation is still precarious, as shown in the data below, representing the performance of the top five automotive startups in 2024.

In terms of revenue, Li Auto ranks first, followed by NIO, Xpeng third, Xiaomi fourth, and Leapmotor fifth.

In sales volume, Li Auto leads, followed by Leapmotor, NIO third, Xpeng fourth, and Xiaomi fifth.

However, regarding profits, Li Auto is at the top, with Leapmotor achieving profitability in the fourth quarter of 2024. NIO suffered the largest loss, amounting to 22.4 billion yuan.

From a gross margin perspective, NIO's gross margin stands at 9.9%, only higher than Leapmotor (8.4%), but still significantly behind Xpeng (14.3%), Xiaomi Automobile (18.5%), and Li Auto (20.3%).

Under these circumstances, NIO is undoubtedly feeling the pressure, as no matter how impressive the cars or the reputation, businesses ultimately need to turn a profit. Without profitability, the future remains uncertain, especially in today's fiercely competitive market.

Looking at NIO's cash reserves, they amount to only 41.9 billion yuan. If the 2024 loss rate persists, and NIO fails to raise additional funds, it will take just two years to deplete these reserves.

Therefore, NIO's management recently provided a detailed response regarding the company's development priorities and goals for this year.

One critical point is to double sales and achieve profitability in Q4 by 2025.

Doubling sales in 2025 would mean NIO's total sales volume reaching approximately 440,000 units, with a monthly sales volume of 37,000 units—surpassing Xiaomi's annual sales of 350,000 units.

Achieving profitability in Q4 entails even more work for NIO, such as cost control and profit assurance, which is expected to be a formidable challenge. NIO's plan is to achieve a gross margin of 20% for the NIO brand and 15% for the Letao brand.

Setting goals is straightforward, but achieving them is truly remarkable. We will soon see if Li Bin can lead NIO to meet these goals by 2025. If successful, NIO will undoubtedly reverse its current momentum.

Especially now, with many doubting NIO, it needs to deliver a convincing response. Therefore, it will undoubtedly go all in for 2025.