Chinese electric vehicle (EV) maker Nio (NIO) is scheduled to announce its second-quarter results on Tuesday, September 2. NIO stock has rallied about 35% over the past month and is up more than 49% year-to-date. Optimism around the company’s new ES8 flagship SUV has driven the stock higher. Recently, Nio stock earned two ratings upgrades, reflecting improved sentiment. However, Wall Street’s consensus rating suggests cautious optimism, given the intense competition in the Chinese EV market and profitability concerns. The Street’s average price target indicates downside risk from current levels.
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Wall Street expects Nio to report a loss per share of $0.31 for Q2 2025, on revenue of $2.73 billion. The company reported Q2 deliveries of 72,056 vehicles, representing a 26% year-over-year growth and a 71% quarter-over-quarter jump. Notably, Nio’s sub-brands Onvo and FireFly contributed 17,081 and 7,843 vehicles to the Q2 deliveries, respectively.
Meanwhile, investors will look forward to management’s commentary about the demand backdrop, especially as rival Li Auto (LI) issued a weak deliveries outlook for the third quarter amid a highly competitive EV market in China. Focus will also be on the profitability front, as price wars weigh on the margins of EV makers. Recently, Nio announced price cuts across its long-range lineup to compete with Tesla’s (TSLA) new six-seat Model Y L SUV.
Analysts’ Views Ahead of Nio’s Q2 Earnings
Heading into Q2 earnings, JPMorgan analyst Nick Lai upgraded NIO stock to Buy from Hold and raised the price target to $8 from $4.80. Lai placed the stock on “positive catalyst watch,” as he expects Nio’s upcoming Q2 results, the annual Nio Day on September 20, and the Guangzhou Auto Show that starts on November 21 to drive the stock higher.
Interestingly, Lai expects Nio to showcase its upcoming Onvo L80, a new 5-seater battery electric vehicle (BEV) SUV, at the Guangzhou Auto Show in November. The analyst expects Nio to deliver volume growth of 50% and 47% in 2025 and 2026, respectively.
Likewise, Macquarie analyst Eugene Hsiao upgraded NIO stock to Buy from Hold. The 5-star analyst believes Nio’s L90 model, priced at RMB 265.8k, is poised to be its most competitive offering, as it is near the price of the five-seat Tesla Model Y and appears to be a better value for money compared to Li Auto’s i8 model at a 17% lower entry price, but offering many similar features. Hsiao raised his 2025 and 2026 volume estimates for Nio to 347,000 and 500,000, respectively.
Is NIO Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Moderate Buy consensus rating on Nio stock based on four Buys, six Holds, and one Sell recommendation. The average NIO stock price target of $5.19 indicates a downside risk of 20.3% from current levels.
