Nio (NYSE:NIO) is heading into its Q3 2025 earnings report this week (November 25) with expectations on the rise. The company’s share price has climbed 45% over the past six months, supported by the introduction of new models and a sustained rise in deliveries.
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The recent weeks have been especially full of good cheer. Nio has posted record deliveries for three consecutive months, capped by October’s 40,397 units, a 92.6% year-over-year increase.
Arguably, headwinds in the company’s domestic Chinese market are making this improved performance all the more impressive. This includes robust competition in the EV space and the suspension of trade-in subsidies in six Chinese regions earlier this year.
Will the company’s upcoming quarterly report see a continuation of the bullish trends? One top investor, known by the pseudonym Juxtaposed Ideas, certainly thinks so.
“Despite the risks from the intense domestic EV competition and the withdrawn EV subsidies, I believe that it remains well positioned to deliver a high-growth cadence moving forward,” shares the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
Juxtaposed points to the company’s expanded monthly manufacturing capacity, which is slated to reach 56,000 going forward. If this comes to fruition, NIO could be manufacturing 672,000 vehicles in 2026. That would be a marked improvement from the current year-to-date numbers of 241,618 and the 221,970 vehicles from 2024.
The EV maker is gunning to hit a non-GAAP break-even target in Q4, and Juxtaposed predicts that its “rich” balance sheet ($3.8 billion net cash at the end of Q2) and “narrowing” quarterly cash burn (-$564.1 million in Q2 was a +32.1% sequential improvement) should allow the company to emerge on the other side of the profitability divide.
Moreover, despite the rising share price, NIO remains at a “compelling” forward EV/Sales valuation of 1.49x, within range of the sector median of 1.30x. In other words, there’s more room for gains up ahead.
“I believe that the recent stock price rally from the April 2025 bottom may still have legs indeed,” declares Juxtaposed Ideas, who rates NIO a Buy. (To watch Juxtaposed’s track record, click here)
Wall Street, however, is more divided on what comes next. With 6 Buy recommendations, 6 Holds (i.e., Neutral), and 1 Sell, NIO carries a Moderate Buy consensus rating. The average price target sits at $6.90, suggesting about 24% upside from here (See NIO stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.