Nio stock drops to $4.20 despite 69% revenue surge

Nio’s shares fell to $4.20, the lowest level since July 2025, after the company reported second-quarter results showing revenue rose 69% year over year to $4.7 billion and a net loss of $77.8 million.

Vehicle deliveries and overall sales volumes increased sharply year over year, contributing to the revenue gain. Revenue grew roughly 27.5% from the prior quarter.

Gross margin improved to 18.4% from 10.3% a year earlier, but declined from 19% in the previous quarter.

Management highlighted stronger sales of higher-margin models and cost-structure optimization. In a company statement, Chief Executive William Li wrote: “The Company continued to improve its overall operating quality. Supported by strong sales of higher-margin models and ongoing optimization of our cost structure, we maintained healthy gross and vehicle margins despite rising cost pressures.”

Nio forecast third-quarter deliveries of between 108,000 and 111,000 units and expects revenue to grow more than 50% year over year.

The stock traded below a technical support level near $4.40 and has fallen more than 40% from its peak this year. Chart indicators showed the share price below major moving averages and the Relative Strength Index near 34, its lowest reading since mid-July.

Some analysts flagged potential further downside toward about $3.50, while others pointed to chart patterns that could allow a short-term rebound.

The wider Chinese electric-vehicle sector also saw declines. BYD, Xpeng, Li Auto and Polestar have recorded notable share-price drops this year. BYD fell to around $11 and warned of higher costs and weaker domestic demand while expanding abroad. Xpeng and Li Auto each reported substantial declines, and other manufacturers including Xiaomi and Zeekr also posted losses.

Nio returned to profitability in the fourth quarter of last year but has not sustained those gains. The second-quarter results show rapid sales growth alongside continued net losses.