Nio Shares Drop Amid Weak Q4 Revenue and Sales Projections
Nio's Hong Kong-listed shares tumbled 7.3% after the Chinese EV Maker issued disappointing fourth-quarter guidance. Revenue forecasts of up to 34 billion yuan ($4.8 billion) fell short of analyst expectations, while vehicle sales projections of 120,000-125,000 units missed market estimates.
The third quarter offered some bright spots, with narrowing losses and improved gross margins. Operating cash FLOW turned positive for the first time in 2025, signaling potential operational improvements. Yet investors remain wary of intensifying competition and regulatory headwinds in China's crowded electric vehicle market.
While strong cash reserves provide a buffer, Nio's path to profitability appears uncertain. Margin expansion will be critical as the company navigates challenging market conditions through 2026.
