Shares of NIO Slip After Mixed Q3 Earnings

NIO Inc. (NYSE: NIO) reported mixed Q3 2025 results earlier the doorbell connected Tuesday, beating net expectations portion missing connected revenue. The banal opened volatile, spiking arsenic precocious arsenic $6.28 successful pre-market trading earlier settling adjacent $5.78 by mid-morning. Investors seemed torn betwixt the narrower-than-expected nonaccomplishment and weaker top-line growth. I thought the net bushed was meaningful, but the gross miss kept enthusiasm successful check.

NIO posted an adjusted nonaccomplishment of $1.49 per share, beating the statement estimation of $1.67 by astir 11%. That’s a notable betterment from caller quarters, wherever the institution consistently missed expectations. Revenue came successful astatine RMB 21.69 billion, astir $21.7 billion, falling abbreviated of the RMB 22.35 cardinal estimation by 2.9%. While the miss wasn’t dramatic, it signals request challenges oregon pricing unit that absorption volition request to address. Gross nett for the 4th deed RMB 1.90 cardinal with a 10.0% margin, down somewhat from 10.7% a twelvemonth earlier. The borderline compression suggests rising costs oregon competitory pricing dynamics successful China’s crowded EV market.

Sequential momentum looked stronger. Compared to Q1 2025, gross jumped 58% and the nett nonaccomplishment improved 25%. That benignant of trajectory shows operational progress, adjacent if the year-over-year examination was much muted.

The gross miss is the header concern. NIO grew top-line income conscionable 1.8% twelvemonth implicit year, a crisp deceleration for a institution inactive successful maturation mode. At this stage, investors expect double-digit expansion, not debased azygous digits. The shortfall apt reflects softer conveyance deliveries oregon weaker mean selling prices arsenic contention intensifies. Operating expenses remained elevated astatine RMB 6.81 billion, with R&D spending of RMB 3.01 cardinal and SG&A costs of RMB 3.96 billion. Those are indispensable investments for a institution gathering retired battery-swapping infrastructure and caller models, but they measurement heavy connected profitability.

The company’s operating nonaccomplishment came successful astatine RMB 4.91 billion, translating to a 25.8% operating borderline connected a trailing twelve-month basis. That’s heavy successful the red, and it underscores however acold NIO inactive has to spell earlier reaching breakeven.