- Nio shares surged 14.80% in Hong Kong after the company posted its first-ever quarterly profit since inception.
- The EV maker provided robust first-quarter delivery guidance, projecting a year-on-year vehicle delivery increase of about 90.1% to 97.2%.
Nio Inc's Hong Kong-traded shares surged in early Wednesday trading following the release of strong financial results on Tuesday.
As of press time, the stock was up 14.80% to HK$43.68.
The strong market reaction was primarily driven by the company's fourth-quarter earnings report released yesterday. Nio posted an operating profit of 807.3 million yuan ($115.4 million) under GAAP measures for the quarter, marking its first-ever quarterly profit since inception.
The historic financial turnaround also buoyed Nio's US-traded American Depositary Receipts (ADRs), which closed 15.38% higher at $5.70 on Tuesday.
By contrast, Nio's peers saw a more muted performance in Hong Kong. Xpeng rose 2.56% to HK$74.15, while Li Auto edged up 0.72% to HK$69.55 as of press time. Li Auto and Xpeng are scheduled to report their fourth-quarter earnings on March 12 and March 20, respectively.
Nio's profitability milestone in the fourth quarter of 2025 was primarily driven by record vehicle deliveries, coupled with robust market demand for its high-margin models.
Revenue for the three months ended December 31 surged 75.9% year-on-year to 34.65 billion yuan. The company's overall gross margin expanded significantly to 17.5%, up from 11.7% in the fourth quarter of 2024.
Nio delivered a record 124,807 vehicles in the fourth quarter, a 71.7% increase from a year earlier. The third-generation ES8 — a model with a starting price above 400,000 yuan and a gross margin of roughly 20% — accounted for 32% of total deliveries during the period.
Despite the stellar fourth-quarter performance, Nio and its domestic peers are facing renewed industry headwinds as they enter 2026.
Nevertheless, Nio provided robust delivery guidance, projecting first-quarter vehicle deliveries of between 80,000 and 83,000 units. This represents a year-on-year increase of about 90.1% to 97.2%.
Shrugging off short-term challenges, Nio's management struck an optimistic tone during the earnings call. Founder, chairman, and CEO William Li expressed strong confidence in achieving a 40% to 50% full-year sales growth in 2026.
The automaker plans to roll out three all-new models in 2026, including the ES9 flagship executive SUV, a large five-seater SUV based on the new ES8 platform, and the Onvo L80.
These additions will further solidify the company's footprint in the premium large SUV segment, Nio management said.
