Deutsche Bank analyst Bin Wang believes Chinese electric-vehicle maker NIO is likely to achieve its target of reporting a non-GAAP profit in the fourth quarter, driven by an anticipated sequential reduction in research and development (R&D) expenses.

Key Factors Supporting Profitability:

• Vehicle Gross Margin: Expected to surge to around 18% in Q4, supported by a favorable product mix. Deliveries of the high-margin ES8 SUV are projected to increase significantly, with the model on track to hit its 2025 sales target of 40,000 units. Q4 ES8 deliveries are forecast to reach 33,000 units.
• Other Revenue Streams: The company's other sales and services segment is expected to maintain consistent revenue and gross profit compared to the third quarter.

The outlook reflects NIO's efforts to improve operational efficiency and capitalize on its premium product lineup.