Ideal Auto needs annual sales of 400,000 vehicles to break even

According to analysis, Ideal Auto needs to achieve annual sales of 400,000 vehicles to break even. In the first quarter of 2024, the company's operating expenses reached 5.9 billion yuan. Although lower than the previous quarter, due to sales not meeting expectations (more than 100,000 vehicles are required to break even), operating expenses increased significantly year-on-year, resulting in operating losses. R&D expenses remained high, reaching 3 billion yuan this quarter. Ideal Auto laid off more than 5,000 employees in May 2024 and is expected to save 1 billion yuan in operating expenses this year.