Chinese smart electric vehicle maker Nio (NIO) posted a wider-than-expected loss for the first quarter of fiscal 2025 and also missed analysts’ sales expectations. The news dragged its American Depositary Shares (ADS) down 3.4% in pre-market trading, at the time of writing.
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Nio reported an adjusted loss per share of $0.41, significantly higher than the consensus estimate of $0.35 and its prior-year period’s figure of $0.33. Similarly, Total revenues surged 21.2% year-over-year to $1.66 billion but missed analysts’ expectations of $1.74 billion.
Nio Misses Expectations Amid Decline in Auto Sales
For the first quarter ended March 31, 2025, Nio delivered 42,094 vehicles, up 40.1% compared to Q1FY24 but down 42.1% from Q4FY24. In April, Nio delivered 23,900 autos, and in May, it delivered 23,231 vehicles, bringing its year-to-date total to 89,225 deliveries.
Commenting on the deliveries, CEO William Bin Li stated that the company is witnessing a steady rise in monthly delivery volumes. Notably, the company’s two new launches, the ET9 and Firefly, were securing major market share gains in the “premium executive market and high-end small electric car market respectively,” he added.
Looking forward, Nio projects Q2FY25 revenues to be between $2.69 billion and $2.77 billion, reflecting a year-over-year increase of 11.8% to 15%. Moreover, auto deliveries for the second quarter are expected to reach between 72,000 and 75,000, representing year-over-year growth of 25.5% to 30.7%.
The chart below shows Nio’s quarterly deliveries based on data provided by Main Street Data. We can see that Nio’s deliveries spiked in the second half of 2024 but failed to maintain the momentum in Q1FY25.
Is it Good to Buy Nio Stock Now?
Analysts currently prefer to remain on the sidelines on Nio stock due to heated competition and pricing pressure. On TipRanks, NIO stock has a Hold consensus rating based on two Buys, seven Holds, and one Sell rating. Also, the average Nio price target of $5.07 implies 44% upside potential from current levels. Year-to-date, NIO stock has lost 19.3%.
Please note that these ratings were given before the company released its Q1 results and are subject to change once analysts revisit their views.
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