Deutsche Bank analyst Bin Wang said NIO’s 1Q vehicle margin should benefit from
an improved product mix, offsetting higher costs and weaker sales. The ES8 SUV
posted a gross margin near 25% in 4Q with about 40,000 units sold, and sales are
expected to rise in 1Q on a solid order backlog, signaling a favorable mix
shift. While sourcing costs are increasing, the impact should be limited due to
long-term supply contracts.
