Nio reported narrowing losses in the second quarter and raised its outlook for deliveries and revenue in coming months on Tuesday, betting on strong demand for new models under its multi-brand strategy as it aims to break even by year-end.

"Nio has entered a new cycle starting from the second quarter," Chief Executive Officer William Li said on its Q2 earnings call.

Revenue in the three months ended June rose 58 percent from the previous quarter to 19 billion yuan ($2.66 billion). That was up 9 percent from a year earlier.

Net loss came to nearly 5 billion yuan, 26 percent narrower sequentially and almost flat year-on-year. On an adjusted basis, the loss shrank 34 percent from the prior quarter to 4.1 billion yuan. Gross margin improved to 10 percent, compared with 7.6 percent in the first quarter.

The company guided for third-quarter deliveries of 87,000 to 91,000 vehicles and revenue of 21.8 billion to 22.9 billion yuan — both record levels. It is targeting monthly deliveries of 50,000 units in the fourth quarter, nearly double second-quarter volumes.

Li pointed to the rollout of Nio's multi-brand strategy as the main driver of growth.

Orders for the new Onvo L90 launched in late July surpassed expectations, with first-month deliveries reaching 10,575 units, a record for the company.

That momentum is also boosting demand for the smaller L60, which posted its highest monthly orders this year in August.

Nio is also preparing to deliver the new ES8 under the namesake marque, which Li described as "the most competitive model in the high-end, three-row SUV segment".

Pre-orders have started, with deliveries scheduled to begin after the model's launch later this month.

Meeting those targets hinges on production. Li said Nio is working with suppliers to expand capacity, with monthly output of the Onvo L90 expected to reach 15,000 units by October and the Nio ES8 by December.

That would support a fourth-quarter delivery goal of about 150,000 vehicles.

Chief Financial Officer Qu Yu said Nio is targeting a vehicle gross margin of 16 percent to 17 percent in the fourth quarter, when the Onvo L90 and Nio ES8 will both contribute for a full period.

Li said his longer-term goal is to lift gross margin to 20 percent, with the Nio brand eventually pushing toward 25 percent, Onvo toward 15 percent or higher, and the entry-level Firefly brand around 10 percent.

"Our new-generation products have strong cost competitiveness, supported by long-term in-house R&D and cost-control measures," Li said.

"We've made adjustments in product definition, learning from past lessons, and that's why models like the L90 and the new ES8 are being well received."

In terms of future product plans, Li said Nio will to launch three large SUVs next year — the Nio ES9, ES7 and Onvo L80 — to further strengthen its lineup.