Chinese electric vehicle maker Nio (NYSE:NIO) shares were trading lower in premarket on Tuesday after the company reported fiscal second-quarter results, but the stock has since reversed losses and is now trading higher by 1.72%.
The company reported quarterly revenue of 19.01 billion Chinese yuan ($2.65 billion), up 9.0% year-over-year (Y/Y). The revenue grew by 57.9% sequentially.
Analysts, on average, estimated revenue of $2.76 billion for the quarter.
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Excluding items, the company reported an adjusted loss per share per ADS of 1.85 yuan, or 25 cents, compared to a 2.21 yuan loss in the year-ago quarter. Analysts had called for a loss of 30 cents per ADS.
Vehicle deliveries were 72,056 in the quarter, up 25.6% Y/Y. The deliveries rose by 71.2% quarter-over-quarter (Q/Q). Consequently, vehicle revenue grew by 2.9% Y/Y and 62.3% Q/Q.
Nio delivered 21,017 vehicles and 31,305 vehicles in July and August 2025, respectively. As of August 31, 2025, it had delivered 166,472 vehicles in 2025, with cumulative deliveries reaching 838,036.
Gross margin for the quarter expanded to 10.0%, up from 9.7% a year ago and 7.6% the previous quarter, mainly due to a positive mix.
Vehicle margin narrowed to 10.3%, down from 12.2% in the prior year and slightly above 10.2% in the previous quarter.
As of June 30, 2025, cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits totaled 27.2 billion yuan ($3.8 billion).
CEO William Bin Li highlighted strong demand for the ONVO L90 and the all-new NIO ES8. Li emphasized that these flagship models, backed by NIO’s advanced battery-swapping and charging infrastructure and multi-brand strategy, could influence the large three-row SUV market while accelerating the shift toward battery electric vehicles.
CFO Stanley Yu Qu said cost-reduction and efficiency initiatives launched in the second quarter have already improved adjusted operating loss by over 30% sequentially, excluding restructuring charges.
Outlook
For the third quarter of 2025, the company expects vehicle deliveries to range between 87,000 and 91,000 units, reflecting an increase of approximately 40.7% to 47.1% compared with the same period in 2024.
The company forecasts revenues in the range of 21.81 billion yuan ($3.05 billion) to 22.88 billion yuan ($3.19 billion), implying year-over-year growth of about 16.8% to 22.5%, but falling short of the $4.69 billion analyst consensus.
Price Action: NIO shares are trading higher by 1.72% to $6.490 premarket at last check Tuesday.
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