Nio Stock Drops After Q1 Results And Outlook Disappoints The Street, Margins Shrink

Chinese electric vehicle maker Nio, Inc NIO shares were trading lower in premarket on Tuesday after the company reported fiscal first-quarter results.

The company reported quarterly revenue of 12.03 billion Chinese yuan ($1.66 billion), up 21.5% year-over-year. However, revenue declined by 38.9% sequentially.

Also Read: China’s NIO Clocks 13% Deliveries Growth In May, Tesla Lags

Analysts, on average, estimated revenue of $1.73 billion for the quarter.

Excluding items, the company reported an adjusted loss per share per ADS of 3.01 Chinese yuan, or 41 cents, compared to a 2.39 Chinese yuan loss in the year-ago quarter. Analysts had called for a loss of 37 cents per ADS.

Vehicle deliveries were 42,094 in the quarter, up 40.1% year over year (Y/Y). However, deliveries declined by 42.1% quarter over quarter. Consequently, vehicle revenue rose by 18.6% year over year and decreased by 43.1% quarter over quarter.

Nio delivered 23,900 vehicles in April 2025 and 23,231 vehicles in May 2025. As of May 31, 2025, the cumulative number of Nio vehicle deliveries reached 760,789.

Gross margin for the quarter expanded to 7.6%, up from 4.9% a year ago and down from 11.7% the previous quarter, as vehicle margin expanded Y/Y from 9.2% a year ago to 10.2%, down from 13.1% a quarter ago. Since the first quarter, the company has implemented various cost control measures, including organizational restructuring, cross-brand integration, and efficiency improvements in R&D, supply chain, sales, and services.

As of March 31, 2025, cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits totaled 26.0 billion Chinese yuan ($3.6 billion).

William Bin Li, founder, chair and CEO, said the company has noted a steady increase in monthly delivery volume since the beginning of the second quarter. In April, he said the ET9 and Firefly secured notable market shares in the premium executive market and high-end small electric car market, respectively. He also witnessed the rising demand for ONVO L60. Li added that the New ES6, EC6, ET5, and ET5T started deliveries with all-around upgrades in late May. 

Outlook: Nio expects second-quarter deliveries of 72,000 and 75,000 vehicles, reflecting a 25.5% to 30.7% year-over-year increase.

The company projects revenues between 9.51 billion Chinese yuan ($2.69 billion) and 20.07 billion Chinese yuan ($2.77 billion), representing an increase of approximately 11.8%-15.0% Y/Y versus the $2.78 billion analyst consensus.

Price Action: NIO shares are down 1.70% at $3.46 premarket at the last check Tuesday.

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