⚡NIO.Historical breakdown of your net profit margins.

One of the main cost-optimization strategies across the automotive industry—and the same dynamic likely applies to other sectors—is to assemble as many models as possible on the same assembly line.

For example, the Tesla Model Y and the Tesla Model 3 share many of their platforms and components, so they are assembled on very similar or parallel production lines within the same factories. They share approximately 75% of their parts.

Manufacturing many different vehicles using the same architecture, the same components, and the same installed capacity, while keeping the line operating near maximum utilization, is where profit margins typically emerge.

From an industrial perspective, every manufacturer's dream is to produce the same car ten times and sell it as if it were ten different cars. Tesla's annual net profit margin is approximately 3.95%. Volkswagen's is 3.3%. BYD's ranges from 3.5% to 4.1%. Toyota maintains a net profit margin of approximately 7.6%. The Mercedes-Benz Group's net profit margin is 3.7%. BMW's is 5.2%. Audi's is 3.9%.

Clearly the net profit margin of general brands today is at an all-time low.

NIO.Historical breakdown of your net profit margins.

NIO Net Profit Margin 2018 -471.25%

NIO Net Profit Margin 2019 -139.5%

NIO Net Profit Margin 2020 -34.02%

NIO Net Profit Margin 2021 -29.26%

NIO Net Profit Margin 2022 -29.55%

NIO Net Profit Margin 2023 -38.02%

NIO Net Profit Margin 2024 -34.47%

NIO Net Profit Margin 2025 -17.80% (Q4 +0.82%)

NIO Net Profit Margin Q1 2026… In the first quarter (Q1) of 2026, NIO recorded a net profit margin of approximately -1.94% (compared to the first quarter (Q1) of 2025, NIO's net profit margin was approximately -56.3%). This means that, since the start of mass production, NIO has gradually improved its margins, moving from triple-digit net losses to a period where all indications point to several consecutive quarters of positive net profits.

• Going from -471% to -139% was practically essential for survival.

• Going from -35% to -2% is much more difficult, as it requires true operational efficiency.

Another point of comparison: Ferrari's net profit margin is around 22.3% (over the last twelve months)... a brand that sells an average of 10,000 units annually... which demonstrates that achieving extraordinary profits has never depended on volume.

Volume alone is not enough. Volume is useful for:

• diluting fixed costs,

• negotiating better with suppliers,

• amortizing factories,

• amortizing R&D.

But then another question arises:

What pricing power do you have?

That's where the new ES9 might hold the answer... a kind of large hybrid SUV halfway between mainstream and niche models.