Why Is Nio Stock Gaining Tuesday?

Chinese electric vehicle maker Nio Inc. (NYSE:NIO) stock rose Tuesday after the company reported fiscal third-quarter results.

The company posted quarterly revenue of 21.79 billion Chinese yuan ($3.06 billion), rising 16.7% year-over-year (Y/Y) and 14.7% sequentially, but coming in below the consensus estimate of $3.26 billion.

Excluding one-time items, the company posted an adjusted loss of 1.14 yuan (15 cents) per ADS, narrowing from 2.14 yuan a year earlier and beating analyst expectations for a 24-cent loss.

Also Read: NIO And Li Auto Fall As Beijing Tightens Grip On EV Exports

Vehicle deliveries were 87,071 in the quarter, up 40.8% Y/Y. The deliveries rose by 20.8% quarter-over-quarter (Q/Q). Consequently, vehicle revenue grew by 15.0% Y/Y and 19.0% Q/Q.

Nio, often referred to as the “Tesla of China,” remains a major competitor to Tesla, Inc. (NASDAQ:TSLA). For comparison, Tesla delivered a record 497,099 vehicles globally in the third quarter, with growth across all regions.

Nio delivered 40,397 vehicles in October 2025. As of October 31, 2025, it had delivered 241,618 vehicles in 2025, with cumulative deliveries reaching 913,182.

Gross margin for the quarter expanded to 13.9%, up from 10.7% a year ago and 10.0% the previous quarter, mainly due to a positive mix.

Vehicle margin reached 14.7%, up from 13.1% in the prior year and above 10.3% in the previous quarter.

As of September 30, 2025, cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits totaled 36.7 billion yuan ($5.1 billion).

Management Commentary

William Bin Li, NIO’s founder, Chair, and CEO, said the quarter reflected strong competitiveness from the NIO, ONVO, and FIREFLY brands across their respective segments. He noted that NIO is working closely with supply chain partners to ramp up production.

He highlighted product momentum, stating that the All-New NIO ES8 set the fastest record among BEVs priced above 400,000 yuan in China to surpass 10,000 units delivered, the ONVO L90 remained the top-selling large BEV SUV for three straight months, and FIREFLY quickly secured a leading position in the small smart high-end EV market.

Stanley Yu Qu, NIO’s CFO, said continuous cost optimization and a higher contribution from premium models drove overall gross margin to its highest level in three years. He added that operational efficiency initiatives across R&D, sales, and service helped reduce adjusted operating losses by more than 30% quarter-over-quarter.

Outlook

For the fourth quarter of 2025, the company expects vehicle deliveries to range between 120,000 and 125,000 units, reflecting an increase of approximately 65.1% to 72.0% compared with the same period in 2024.

The company forecasts quarterly revenues in the range of 32.76 billion yuan ($4.602 billion) to 34.04 billion yuan ($4.781 billion), implying year-over-year growth of about 16.8% to 22.5%, but falling short of the $4.980 billion analyst consensus estimate.

Price Action: NIO shares were trading higher by 2.43% to $5.890 premarket at last check Tuesday.

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