Nio Projects First Profit by Q4 2025 on Sales Surge

Profitability on the Horizon

Chinese electric vehicle manufacturer Nio has announced its expectation to achieve its first-ever adjusted operating profit in the fourth quarter of 2025. The company projects a profit between 700 million yuan ($100.84 million) and 1.2 billion yuan ($172.88 million) for the period.

This forecast marks a significant turnaround from the adjusted operating loss of 5.54 billion yuan reported in the same quarter a year prior.

Market Performance and Growth Drivers

The optimistic outlook is primarily fueled by a sharp increase in vehicle deliveries and strategic cost management. Nio delivered 124,807 vehicles in the fourth quarter, a 72% increase year-over-year. For the full year, deliveries rose by 47% to 326,028 units.

This growth is attributed to strong demand for premium models like the ET5 and ES6, an improved product mix enhancing vehicle margins, and the introduction of its lower-cost Firefly subcompact EV to broaden its customer base.

Economic and Market Impact

Following the announcement, Nio's U.S.-listed shares surged more than 8% in premarket trading, reflecting strong investor confidence. The positive forecast is particularly notable as it comes amidst intense competition and a prolonged price war within China's crowded EV market.

The company also reaffirmed its commitment to its European operations, despite potential tariff changes by the European Commission.

Outlook Summary

Nio's path to profitability hinges on sustaining its sales momentum, successfully managing costs, and navigating the competitive landscape. The market will closely monitor the company's delivery figures and operational efficiency improvements in the coming quarters.

FAQ

Q: When does Nio expect to become profitable?
A: Nio forecasts achieving its first-ever adjusted operating profit in the fourth quarter of 2025.

Q: What is driving Nio's expected turnaround?
A: The key drivers are a significant increase in vehicle deliveries, a more favorable product mix, and ongoing cost-cutting and operational efficiency efforts.

Source: Investing.com