Nio’s Profit Turnaround Sparks Fresh Investor Excitement

Nio ( (NIO) ) has risen by 11.50%. Read on to learn why.

Nio shares climbed 11.50% over the past week as investors reacted to a rare dose of good news from the Chinese EV maker: management now expects to post its first-ever quarterly adjusted operating profit in the fourth quarter of 2025. The company is guiding for adjusted operating profit of RMB700 million to RMB1.2 billion, a dramatic swing from a sizeable loss a year earlier, with standard operating profit also expected to turn positive. This turnaround is being driven by higher vehicle sales, better margins from a stronger mix of premium models, and tighter cost control as production scales.

The improved profit outlook is backed by strong operational data. Nio reported a 96.1% year-on-year jump in January 2026 deliveries to 27,182 vehicles, supported by robust demand for its ES8 and other higher-end models, even though volumes cooled from December’s year-end surge. Founder William Li has outlined an aggressive growth roadmap, targeting annual delivery growth of 40%–50% over the next two years and potentially approaching 500,000 vehicles by 2026. Premium models such as the ES9, which could generate more than RMB100,000 profit per unit, plus the expansion of the more affordable Onvo lineup and the battery-as-a-service offering, are seen as key levers to lift profitability further.

Wall Street’s reaction, while constructive, remains measured. Consensus still sits at a Moderate Buy/Hold mix, with an average price target around $6.03–$6.70 implying notable upside from current levels but also reflecting ongoing concerns about intense competition in China’s EV market and execution risks around Nio’s ambitious plans. Analysts expect Nio’s quarterly loss per share to nearly disappear, and some, like Morgan Stanley, highlight the long-term potential of Nio’s in-house autonomous driving chips and software revenue streams. For investors, the 11.50% weekly jump signals renewed optimism that Nio may be turning a corner from cash-burning growth story to a more sustainable, profit-focused EV player—albeit one that still carries significant volatility and risk.