Nio CEO Says In-House Smart Driving Chip Rivals Industry Flagships, Saves Costs

Nio Inc. CEO William Li stated that the company's in-house smart driving chip, NX9031, is on par with industry flagship chips. The chip is expected to save costs, although the amount saved per unit is not closely tied to the volume of units sold. Nio reported a 55.2% YoY increase in deliveries in August and a 9% YoY growth in revenue to $2.65 billion, despite missing analysts' revenue estimates.

Title: Nio Inc. CEO Highlights Cost Savings from In-House Smart Driving Chip

Nio Inc. CEO William Li recently asserted that the company's in-house developed smart driving chip, NX9031, rivals industry flagship chips in performance. Li made this statement during the company's second-quarter earnings call. The chip is anticipated to bring cost savings to Nio, although Li did not specify how much is saved per unit, indicating that the cost savings are not closely tied to the volume of units sold.

The news comes as Nio reported a significant 55.2% year-over-year increase in deliveries in August, with a total of 31,305 vehicles delivered. This marks a substantial growth in the company's performance. Additionally, Nio's revenue grew by 9% year-over-year to $2.65 billion, despite missing analysts' revenue estimates of $2.76 billion.

Li Auto, another Chinese automaker, also announced plans to expand into overseas markets such as the Middle East, Central Asia, and Europe. The company is focusing on autonomous driving and robotics as part of its future strategy. Meanwhile, BYD Co. Ltd. reported a 30% decline in profits, attributing this to stiff competition in the domestic market due to China's EV Price War.

Nio's stock price climbed 3.1% on Tuesday, closing at $6.58, following the positive earnings report. The broader markets dipped, with the S&P 500 sliding 0.7% and the Nasdaq Composite falling 0.8%. Nio's peers, Li Auto and BYD, also saw gains, with Li Auto rising 4.5% to $24.40 and BYD climbing 2.9% to $14.04.

References:
[1] https://www.benzinga.com/markets/asia/25/09/47468101/nio-ceo-william-li-says-new-in-house-smart-driving-chip-on-par-with-industry-flagships-will-save-costs
[2] https://www.nasdaq.com/articles/stock-market-today-nio-jumps-glimmers-profitability-emerge
[3] https://finance.yahoo.com/news/nio-inc-achieved-31-305-093000660.html