Shanghai, China – Nio Inc. (NIO) shares soared 17% on Tuesday, closing at $5.22, as investors reacted positively to record-breaking vehicle deliveries and improving margins ahead of the company’s highly anticipated fourth-quarter earnings report. The rally continued in after-hours trading, with shares edging up an additional 0.38% to $5.24.
Nio’s Record-Breaking Deliveries and Market Expansion
Investors have taken notice of Nio’s impressive 39% year-over-year increase in total 2024 deliveries. December alone saw a record-setting 31,000 vehicles delivered, reinforcing the company’s accelerating growth trajectory. The momentum has carried into 2025, with the first two months showing a delivery increase of over 50% compared to the prior year.
Nio has also expanded its market reach with the launch of its second brand, Firefly, which targets urban lifestyle consumers. With a competitive starting price of $20,500, Firefly has begun taking preorders, positioning itself as an affordable alternative in the electric vehicle (EV) space. Additionally, Nio introduced the Onvo brand to further penetrate the mass-market segment, a strategic move that could boost sales volume and drive long-term profitability.
Improving Margins Signal Path to Profitability
One of the biggest catalysts behind Nio’s stock surge is its improving vehicle margins, a key profitability metric. Margins rose from 9.2% in Q1 2024 to 13.1% in Q3, indicating stronger cost efficiencies and higher sales volume. As the company gears up to release its Q4 and full-year 2024 earnings on March 21, 2025, analysts will closely watch for continued margin expansion—a crucial factor in Nio’s road to sustained profitability.
Strategic Partnership with BASF to Enhance Efficiency
Beyond strong sales performance, Nio recently announced an expanded collaboration with BASF Coatings, a division of the German chemical giant BASF. The partnership will facilitate annual strategic meetings focused on exterior coatings, which could lead to cost savings, improved product offerings, and greater manufacturing efficiency.
This collaboration aligns with Nio’s broader strategy of refining production processes and strengthening its supply chain, potentially enhancing its competitive edge in the fast-growing EV market.
Upcoming Earnings Report Could Be a Game Changer
With strong delivery numbers, rising margins, and key strategic partnerships in place, Nio’s upcoming earnings report could serve as a major catalyst for further stock movement. Investors and analysts alike will be closely monitoring the financial results on March 21, 2025, to assess whether Nio can sustain its momentum and edge closer to profitability.
