Shanghai, China – March 21, 2025 – Nio Inc. (NYSE: NIO) shares dropped more than 6% in U.S. premarket trading on Friday after the Chinese electric vehicle (EV) maker missed Q4 earnings estimates and issued disappointing guidance for the current quarter.
Q4 Earnings Miss and Revenue Shortfall
Nio reported a fourth-quarter loss of RMB3.17 per share, significantly worse than the RMB2.12 loss analysts had expected.
- Revenue came in at RMB19.7 billion, falling short of the RMB20.81 billion consensus.
- The company delivered 72,689 vehicles, marking a 45% year-over-year increase, but missing expectations of 73,207 deliveries.
- Vehicle sales totaled RMB17.48 billion, up 13% year-over-year, but below forecasts of RMB18.04 billion.
- Vehicle margins improved slightly to 13.1%, compared to 11.9% a year earlier, but fell just shy of the 13.2% consensus estimate.
Disappointing Q1 Guidance Weighs on Sentiment
For the current quarter, Nio’s guidance disappointed investors. The company expects:
- Revenue between RMB12.37 billion and RMB12.86 billion, far below the RMB16.73 billion analysts were forecasting.
- Vehicle deliveries in the range of 41,000 to 43,000, significantly missing expectations of 65,052 deliveries.
CEO Highlights Market Leadership Despite Shortfall
Despite the miss, William Bin Li, Nio’s founder, chairman, and CEO, highlighted the company’s market dominance in China’s high-end EV segment:
“In 2024, we achieved a new delivery record of 221,970 vehicles. The Nio brand maintained its leadership in China’s BEV market for vehicles priced over RMB300,000, capturing a 40% market share,” Li stated.
He also noted that the ONVO L60 SUV has secured a top-three position in China’s BEV SUV market priced between RMB200,000 and RMB300,000.
Outlook: Headwinds Persist for Nio
The weaker-than-expected guidance highlights slowing demand and competitive pressures in China’s EV market, raising concerns about margin compression amid an ongoing price war. With vehicle deliveries and revenue forecasts falling significantly below estimates, investor sentiment around Nio remains cautious.
The company will need to navigate pricing pressures, expand its delivery volumes, and boost profitability to regain market confidence.
