Nio CEO William Li Says New In-House Smart Driving Chip On Par With Industry Flagships, Will Save Costs
Nio Inc. (NYSE:NIO) CEO William Li says that the automaker's in-house smart driving chip rivals industry flagship chips at the company's second-quarter earnings call.
Nio's In-House Smart Driving Chip On Par With Flagships, Saves Costs
"Our in-house developed smart driving chip NX9031 can achieve the performance that is on par with four flagship chips in the industry," Li said during the Q2 earnings call on Tuesday.
Li was also asked about the cost savings due to switching to in-house chips and if the amount saved per unit was tied to volumes. "Cost of savings per unit is not really closely tied in the actual volume we sell or actual number of the pieces we sell," Li said.
He added that the company's decision has proven to be advantageous in terms of cost when compared to previous instances where it outsourced chips.
"Even on the third generation in comparison to the industry flagship smart driving chips, we still have a cost advantage and the competitiveness with our in-house solution," he said, while refusing to elaborate on savings achieved per unit.
Nio Reports Strong Deliveries, Revenue Misses Despite Growth
The report comes as Nio reported over 31,305 units delivered in August, marking a 55.2% YoY increase for the company. Nio's delivery figures included the ONVO line, which boasted 16,434 deliveries, while Firefly recorded 4,346 deliveries.
Nio's revenue also grew over 9% YoY to over $2.65 billion and a loss per share of 25 cents, beating analyst estimates of 30 cents. However, the company's revenue missed analysts' revenue estimates of $2.76 billion.
Li Auto's Global Expansion Plans, BYD Loses Profits
Meanwhile, Nio's fellow Chinese automaker Li Auto Inc. (NASDAQ:LI) recently said the company plans to expand to overseas markets like the Middle East, Central Asia and Europe.
The company also highlighted that autonomous driving and robotics were a big part of its plans moving forward, adding that the company was testing robots. "The third phase will be after 2027, where we will be focusing on all four autonomous driving and new form factors of AI agents," Li Auto CEO Xiang Li said.
Elsewhere, Chinese EV giant BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) reported a 30% decline in profits during the company's earnings call, blaming the stiff competition in the domestic market due to China's EV Price War.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next:
Photo courtesy: Shutterstock