Latest news with #NioInc
Business Insider
6 hours ago
- Automotive
- Business Insider
NIO Is About to Report Q1 Earnings Tomorrow. Here Is What to Expect
Chinese automaker Nio Inc. (NIO) is set to report its first-quarter 2025 results on June 3, before the U.S. market opens. Wall Street analysts expect Nio to report a loss per share of $0.35 for Q1 versus a loss of 0.33 in the same quarter a year ago. Meanwhile, revenues are expected to grow by 26% from the year-ago quarter to $1.74 billion, according to data from the TipRanks Forecast page. Notably, Nio has a disappointing earnings history. The company has missed EPS estimates six times out of the last nine quarters. Confident Investing Starts Here: Ahead of the Q1 print, Morgan Stanley analyst Tim Hsiao maintained a Buy rating on Nio stock with a price target of $5.90 per share. Hsiao believes that Nio's recent rollout of the facelifted ET5 and ET5 Touring models, along with the updated versions of the ES6 and EC6 SUVs introduced on May 16, could enhance the company's competitive standing in China's electric vehicle market. On June 1, Nio delivered 23,231 vehicles in May 2025, marking a 13.1% increase year over year. This figure includes premium smart electric vehicles under the NIO brand, family-oriented vehicles from the ONVO brand, and smart high-end electric vehicles from FIREFLY. Year-to-date, NIO delivered 89,225 vehicles, achieving a 34.7% increase from 2024. As of May 31, the company's cumulative deliveries reached 760,789 units. Main Street Data, NIO delivered a record 72,689 vehicles, marking a 45.2% year-over-year increase. This achievement was driven by strong performance across its brands. Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 9.89% move in either direction. Is Nio a Buy, Sell, or Hold? Overall, Wall Street has a Hold consensus rating on NIO stock based two Buys, seven Holds, and one Sell assigned in the last three months. The average NIO stock price target of $5.07 implies 43.22% upside potential from current levels.
Yahoo
3 days ago
- Business
- Yahoo
What NIO's Q1 Earnings Could Reveal About Its Breakeven Dream
Nio Inc. (NIO) has been a disappointing stock this year, underperforming the broader market and particularly its Chinese peers, despite a moderate rebound following the tariff war shock that hit the EV sector. While the company has made progress on deliveries and shown some improvement in margins, the bold target set by management to stabilize losses in Fiscal 2025 still feels out of reach, even with three quarters left. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The upcoming launch of several new models with better margins, along with ongoing cost-cutting strategies, is the main hope for doubling margins by year-end. With Q1 results set to drop on June 3rd, I think investors will be watching closely for any shifts in margin trends or cost structure. That said, I remain skeptical that Nio can consistently maintain steady losses, move toward profitability, and generate healthy cash flow in such a short timeframe. For now, I'd rate the stock as a Hold. Investors are closely monitoring Nio's investment thesis, which hinges on the company achieving financial breakeven by 2025 and potentially turning profitable by 2026. According to Nio's CEO and founder, William Li, the company is expected to hit breakeven in the fourth quarter of this fiscal year based on three key factors: (1) the launch of nine new models to fully diversify the product portfolio; (2) the rollout of new vehicle technologies aimed at gradually boosting gross margins; and (3) perhaps the most challenging, the aggressive expansion of its battery swapping network, with plans to install stations in every county across China's 27 provinces—an initiative that's expected to drive sales. In Q1, Nio reported a solid 42,094 vehicle deliveries, marking a 40% year-over-year increase. The company is also seeing early momentum with its new Onvo and Firefly brands. Between March 19 and 27, out of 6,530 vehicles delivered, 2,690 came from these two brands, even though Nio had not officially started ramping up production of these new models yet. These brands are expected to play a significant role in helping Nio reach its ambitious profitability goals. Management has also reaffirmed its target to double deliveries in 2025 compared to the 2024 goal of 222,000 units. Still, Q1 financials raise some serious questions about how realistic the breakeven by year-end really is. Nio reported a net loss of $977 million, a 24% increase year-over-year, pushing its total projected loss for fiscal 2024 to between $3.1 billion and $3.2 billion—about 4% more than in 2023. Gross margins came in at 11.7%. That helps explain why Nio's ADR has been underperforming. Most analysts covering the stock expect the company to keep reporting annual losses per share until 2027, with the first potential for a positive figure coming in 2028. As for Q1, estimates suggest Nio will report a loss per share of 35 cents, which, while still a loss, would actually be a 7% improvement over the same period last year. Given that analyst consensus seems to clash with Nio management's promise to reach breakeven within the next three quarters, gross margins are likely to be the sore spot come earnings day. Management has already warned in advance that vehicle margins will be under pressure in Q1 due to seasonal factors and a product transition period. They also noted that the NIO brand's vehicle margins are currently under stress, while the ONVO brand has been impacted by weaker-than-expected sales and higher amortization costs. Despite these headwinds, the company aims to improve margins throughout the year, with targets of a 20% vehicle margin for the NIO brand and 15% for ONVO by Q4 2025. In theory, those margin levels are what's needed to hit breakeven. To achieve this, Nio is implementing several cost-cutting measures, such as standardizing platforms across different models and brands (for example, utilizing common seat structures) and reducing hardware costs by consolidating smart vehicle interfaces. Therefore, it'll be essential to monitor the evolution of the cost of sales. Last quarter, it was already up 9.9% year-over-year and 4.4% sequentially. However, management is primarily relying on the launch of higher-margin models in the second half of the year. They're also tightening up pricing and cost controls, which have already led to a 10% drop in the bill of materials in 2024—a trend they say will continue into 2025. Still, it feels like Nio doesn't fully have its business under control. There are just too many internal and external moving parts for the company to realistically double gross margins in such a short time frame. One thing that stood out to me in Nio's story (maybe not in a good way) is how vague the company is when it comes to detailing its cash flows. For a business that annually burns through cash on R&D, infrastructure like battery swaps, and relies on government subsidies, it's a bit surprising how little clarity they provide. A good example is from Q3, when Nio reported positive free cash flow (FCF), despite still posting negative operating margins. In that case, the most likely explanation was changes in working capital, rather than any real improvement in profitability. FCF can still be positive if depreciation is high (a non-cash expense) or if the company boosts payables or books early revenue through pre-sales. In Nio's case, all signs point to this kind of financial maneuvering. And while it's not inherently bad since plenty of companies do it to ease short-term pressure, it's also not a reliable sign of financial health. If FCF is being propped up by accounting maneuvers rather than genuine operational improvements, it's something investors should be wary of. So while Nio's FCF might not look bad at first glance, especially with profitability still lagging, it's likely more of a temporary boost than a true turnaround. The real challenge, which is building a profitable core business, still lies ahead. Analyst sentiment around Nio remains cautious. Among the ten analysts covering the stock, seven recommend holding, two suggest buying, and just one advises selling. Despite this generally conservative outlook, NIO carries an average stock price target of $5.07, implying a significant upside of approximately 38% from the current share price. Investing in Nio remains highly speculative. Currently, management appears to be chasing ambitious targets that may be overly optimistic given the timeframes they've outlined. While Nio is undeniably improving—the delivery ramp-up is a positive sign, and efforts to boost margins are promising—expecting gross margins to double within a year feels unrealistic. Such progress depends not only on internal execution but also on external factors in the EV market, which is grappling with fierce competition, supply chain disruptions, and evolving regulatory challenges. Disclaimer & DisclosureReport an Issue
Yahoo
15-05-2025
- Business
- Yahoo
Is Nio Inc. (NIO) the Best High Volume Stock to Buy Now?
We recently published a list of the 13 Best High Volume Stocks to Buy Now. In this article, we are going to take a look at where Nio Inc. (NYSE:NIO) stands against other best high volume stocks. On May 9, BMO private wealth chief market strategist Carol Schleif joined CNBC's 'Squawk Box' to discuss the latest market trends and the state of the economy. Reflecting on a market decline in April that reached a ~20% drop, Schleif noted that the market recovered and ended only 3% to 4 % down. She described investor reactions during that period as mixed: about 10% were very eager to buy, but another 10% were quite nervous, while the majority remained measured. She emphasized the important distinction between markets and the economy and noted that markets often move ahead of economic realities and quickly shift focus to new topics as part of their discounting mechanism. This is why markets serve as economic indicators and anticipate future developments. She talked about how individual risk tolerance varies, with some younger clients adopting conservative strategies and some older clients favoring aggressive positions, especially in tech. Schleif acknowledged that tariffs are expected to rise from under 3% to ~10%, but despite this anticipation, she's confident that markets and companies will adjust to the changes. She noted the unusual shift in US influence, which now extends beyond material control to more intangible domains, and described this shift in responsibility as significant and complex. Schleif also emphasized the value of globally diversified portfolios, which have been challenging to maintain during periods when the US market outperformed. However, she noted that such diversification, which includes fixed income and foreign equities, has provided better performance and protection year-to-date and helps investors weather volatility better than those concentrated solely in US assets. We first used stock screeners to compile a list of stocks with high average 3-month volumes. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. Note: All data was collected on May 12. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A fleet of eco-friendly electric cars, a symbol of the company's commitment to of Hedge Fund Holders: 20 Nio Inc. (NYSE:NIO) designs, develops, manufactures, and sells smart EVs in China and Europe. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company also offers power solutions and provides energy & service packages to its users, design & technology development activities, and sales & after-sales management activities. Citi maintained its Buy rating on Nio (NYSE:NIO) on April 28 with a price target of $8.10. Following the Shanghai Auto Show, the firm expects Nio to launch new models soon, which will benefit from lower Bill of Materials costs and cost-saving synergies. The premium NIO brand delivered 201,209 vehicles in 2024, when the total was 221,970. This helped Nio secure a 40% market share in China's BEV segment priced above RMB300K. The NIO brand is moving forward with a new product cycle, such as the recently launched flagship sedan ET9 (deliveries starting late May 2025) and 2025 upgrades for existing models (ET5, ET5T, ES6, EC6) planned for Q2 2025. Citi indicated that Nio could see deliveries reach 63K units in Q2, which would be up 50% year-over-year. Further growth is expected, with projections of 100K to 120K units for Q3 and 120K to 150K units for Q4. Overall, NIO ranks 13th on our list of the best high volume stocks to buy now. While we acknowledge the growth potential of NIO, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NIO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Bloomberg
24-04-2025
- Automotive
- Bloomberg
Chinese EV Maker Nio's Challenges Bleed Into Its Bond Prices
A rally in the price of Nio Inc. 's convertible bonds isn't enough to allay concerns over the Chinese electric vehicle maker's financial health, analysts say. Nio's 3.875% US dollar notes due 2029 have risen this week, buoyed by positive sentiment surrounding the sector as auto executives from around the world gather in Shanghai for the nation's premier car show. But only earlier this month they were at 67.65 cents on the dollar — a level widely considered distressed and the lowest in seven months.
