NIO Stock: Why Shares Jumped After Latest Earnings Beat

TLDR

• NIO reported a third-quarter loss of 3.66 billion yuan, narrower than the 5.14 billion yuan loss from the same period last year
• Revenue increased 17% year-over-year to 21.79 billion yuan in the third quarter
• NIO stock rose 3.7% in premarket trading following the earnings report
• Year-to-date sales through October reached about 270,000 vehicles, up 60% compared to last year
• Analysts have raised price targets based on successful new model launches and improved delivery numbers

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NIO Inc. shares climbed in early trading Tuesday after the Chinese electric vehicle manufacturer reported third-quarter earnings that showed progress in reducing losses. The stock gained 3.7% in premarket trading.

NIO Inc., NIO

The company posted a loss of 3.66 billion yuan for the quarter. This represents an improvement from the 5.14 billion yuan loss recorded in the same period last year.

NIO’s revenue reached 21.79 billion yuan in the third quarter. This marks a 17% increase compared to the previous year.

The earnings report came as broader U.S. markets faced pressure. S&P 500 and Dow Jones Industrial Average futures both declined 0.2% during the same trading session.

Year-to-date performance tells a different story for NIO shareholders. The stock has climbed 32% in 2025 before Tuesday’s trading session.

Sales Volume Drives Investor Confidence

Vehicle deliveries have been a bright spot for the company. Through October, NIO sold approximately 270,000 vehicles.

This represents a 60% jump compared to the same period in the previous year. The sales rebound has helped shift investor sentiment in a positive direction.

The company has been rolling out new models to capture market share. These launches appear to be resonating with customers based on the delivery figures.

Analysts have taken notice of the improving sales trajectory. Several have raised their price targets for the stock.

Margin Improvement and Market Expectations

The narrowing loss per share aligns with analyst expectations for continued improvement. Market watchers are projecting even smaller losses in upcoming quarters.

Options traders have positioned for potential volatility around the earnings release. This suggests investors are closely monitoring the company’s progress on cost management.

The delivery numbers through October provide a concrete measure of execution. The 60% year-over-year growth rate shows momentum in the business.

Revenue growth of 17% demonstrates the company’s ability to generate more income. However, the path to profitability remains a work in progress.

Competition in China’s EV market continues to intensify. Multiple manufacturers are vying for market share in the world’s largest auto market.

Subsidy policies in China add another layer of complexity. Changes to government support programs can impact demand for electric vehicles.

NIO’s market capitalization currently stands at $12.22 billion. The average daily trading volume is 72.69 million shares.

The technical sentiment for the stock is currently rated as hold. Year-to-date, the stock has gained 26.37% in performance.

Analysts expect the company to continue its focus on margin improvement. Cost-cutting measures remain a priority as the company works toward profitability.

The third-quarter results showed progress on the bottom line with the narrower loss. Revenue growth of 17% to 21.79 billion yuan came alongside vehicle sales that reached 270,000 units through October, up 60% year-over-year.

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