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NIO Inc. Class A (HK:9866)
:9866

NIO Inc. Class A (9866) AI Stock Analysis

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HK

NIO Inc. Class A

(9866)

Rating:41Neutral
Price Target:
NIO Inc. faces significant financial challenges, including negative cash flow, high debt, and ongoing losses, despite strong revenue growth. The bearish technical indicators and unattractive valuation further weigh on the stock's potential. While the company has ambitious strategic plans and technological advancements, these are overshadowed by current financial constraints.
Positive Factors
Market Position
NIO is a pioneer and leading Chinese company in the premium smart electric vehicle market.
Product Development
Major product cycle refresh with seven new models in FY25 to lift sales; estimate FY24-26F shipment volume CAGR of ~40%.
Technological Advancement
NIO has advanced battery swapping technology, and it is the first in industry to roll out battery as a service (BaaS) package for its customers.
Negative Factors
Financial Performance
Net losses widened, with SG&A expenses increasing >40% y/y to clear old inventory.
Guidance and Results
Expect negative share price reaction to disappointing 4Q24 results and weak 1Q25 guidance.
Market Competition
New model sales could be slower than expected due to intense market competition from the company’s affordable brands.

NIO Inc. Class A (9866) vs. iShares MSCI Hong Kong ETF (EWH)

NIO Inc. Class A Business Overview & Revenue Model

Company DescriptionNIO Inc. is a Chinese multinational automobile manufacturer headquartered in Shanghai, specializing in designing and developing electric vehicles. The company is known for its innovative electric SUVs and sedans, which emphasize high performance, cutting-edge technology, and premium design. NIO also offers a comprehensive suite of services, including battery swapping, charging solutions, and a digital ecosystem to enhance the user experience.
How the Company Makes MoneyNIO Inc. primarily generates revenue through the sale of its electric vehicles, which include models like the ES6, ES8, and EC6. A significant portion of its income is derived from vehicle sales, but the company also earns money through various service offerings. These include its battery-as-a-service (BaaS) model, which allows users to subscribe to battery packs separately from vehicle ownership, and its network of battery swap stations, which provide a convenient alternative to traditional charging. Additionally, NIO benefits from government incentives for electric vehicles and has partnerships with companies like CATL for battery supply, which support its operations and growth in the burgeoning electric vehicle market.

NIO Inc. Class A Earnings Call Summary

Earnings Call Date:Jun 03, 2025
(Q1-2025)
|
% Change Since: 1.45%|
Next Earnings Date:Sep 04, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed sentiment with notable achievements in vehicle deliveries, new model launches, and successful fundraising efforts. However, these are counterbalanced by significant quarter-over-quarter declines in sales and gross margins, along with increased net losses and operational costs.
Q1-2025 Updates
Positive Updates
Increase in Electric Vehicle Deliveries
The company delivered 42,094 smart EVs in Q1 2025, which is a 4.1% year-over-year increase. The total deliveries in April and May were 946,231, and the company expects Q2 deliveries to reach between 147,000 units, marking a 25.5% to 30.7% growth year over year.
Launch of New Models
Successfully launched and delivered new models ES6, EC6, ET5, and ET5P in late May. The new models are equipped with NIO's smart driving chip NS9031 and the full domain vehicle operating system, SkyOS.
Record Revenue Growth
Total revenues reached 12,000,000,000 RMB, marking a 21.5% increase year over year, although there was a decrease of 38.9% quarter over quarter.
Positive Market Reception for New Technologies
The new world model-based version of smart driving was well-received, providing full upgrades in active safety, urban and highway driving, and parking.
Successful Fundraising Efforts
Completed a share offering in Hong Kong, raising over 4,000,000,000 Hong Kong dollars, which was oversubscribed multiple times, attracting global long-term investors.
Negative Updates
Decline in Vehicle Sales Quarter Over Quarter
Vehicle sales were 9,900,000,000 RMB, down 43.1% quarter over quarter, affected by seasonality and fewer deliveries.
Decreased Gross Margins
Overall gross margin decreased to 7.6% from 11.7% last quarter, due to lower vehicle margins.
Increased Net Loss
Net loss was 6,800,000,000 RMB, marking an increase of 30.2% year over year, although it decreased by 5.1% quarter over quarter.
Challenges in Cost Reduction
Despite cost-cutting measures, R&D expenses rose 11.1% year over year. SG&A expenses increased 46.8% year over year, reflecting challenges in reducing operational costs.
Company Guidance
During the first quarter of 2025, NIO Inc. delivered 42,094 smart electric vehicles (EVs), marking a 4.1% year-over-year increase. The deliveries comprised 27,313 vehicles from NIO and 14,781 from Envoy. In Q2 2025, the company anticipates total deliveries to range between 147,000 units, reflecting a growth of 25.5% to 30.7% year-over-year. On the financial front, NIO reported total revenues of 12 billion RMB, a 21.5% increase year-over-year, despite a 38.9% decline quarter-over-quarter. Vehicle sales contributed 9.9 billion RMB, showing an 18.6% rise year-over-year. Meanwhile, the vehicle gross margin improved to 10.2% from 9.2% the previous year but declined from 13.1% last quarter. Efforts in cost reduction contributed to this margin improvement, along with a decrease in material costs per unit. NIO's R&D expenses were reported at 3.2 billion RMB, a 11.1% increase year-over-year, while SG&A expenses rose by 46.8% year-over-year to 4.4 billion RMB. The company aims to enhance operational efficiency, targeting a vehicle gross margin above 20% and expecting improved financial performance with a potential breakeven by Q4 2025.

NIO Inc. Class A Financial Statement Overview

Summary
NIO Inc. shows strong revenue growth but struggles with profitability and cash flow. Declining gross profit margins and negative net income indicate operational inefficiencies. High debt and reduced equity highlight financial risks, while negative cash flows suggest liquidity concerns.
Income Statement
40
Negative
NIO Inc.'s income statement shows a consistent growth in total revenue over the years, with a noticeable increase from 49.3 billion in 2022 to 65.7 billion in 2024. However, the company has been unable to convert this revenue growth into profitability, as indicated by the persistent negative net income and declining gross profit margins, which fell from 10.4% in 2021 to 9.9% in 2024. The EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges.
Balance Sheet
45
Neutral
The balance sheet highlights a stable asset base, but with rising total debt levels, which increased from 20 billion in 2021 to 33.7 billion in 2024, leading to a high debt-to-equity ratio. The stockholders' equity decreased significantly from 25.5 billion in 2023 to 5.9 billion in 2024, indicating financial strain. The equity ratio shows weakness, suggesting a reliance on debt financing.
Cash Flow
35
Negative
The cash flow analysis reveals negative operating cash flow, worsening from -1.38 billion in 2023 to -7.85 billion in 2024, and a negative free cash flow trajectory, which indicates cash flow challenges. The company has been unable to generate sufficient cash from operations to cover capital expenditures, posing liquidity risks.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
65.73B55.62B49.27B36.14B16.26B
Gross Profit
6.49B3.05B5.14B6.82B1.87B
EBIT
-21.87B-22.66B-15.64B-4.50B-4.61B
EBITDA
-18.50B-15.15B-10.05B-985.36M-3.33B
Net Income Common Stockholders
-22.66B-21.15B-14.56B-10.57B-5.30B
Balance SheetCash, Cash Equivalents and Short-Term Investments
33.47B49.75B39.06B52.39B39.51B
Total Assets
107.60B117.38B96.26B82.88B54.64B
Total Debt
33.77B50.38B23.71B20.10B9.43B
Net Debt
14.45B17.44B3.82B4.77B-28.99B
Total Liabilities
94.10B91.65B68.62B44.82B27.47B
Stockholders Equity
5.97B25.55B23.87B34.71B27.17B
Cash FlowFree Cash Flow
-16.99B-15.72B-10.84B-2.11B823.21M
Operating Cash Flow
-7.85B-1.38B-3.87B1.97B1.95B
Investing Cash Flow
0.00-10.89B10.39B-39.76B-5.07B
Financing Cash Flow
1.77B27.66B-1.62B18.13B41.36B

NIO Inc. Class A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price27.90
Price Trends
50DMA
29.44
Negative
100DMA
32.13
Negative
200DMA
35.41
Negative
Market Momentum
MACD
-0.75
Positive
RSI
45.63
Neutral
STOCH
42.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9866, the sentiment is Negative. The current price of 27.9 is below the 20-day moving average (MA) of 29.39, below the 50-day MA of 29.44, and below the 200-day MA of 35.41, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 42.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9866.

NIO Inc. Class A Risk Analysis

NIO Inc. Class A disclosed 122 risk factors in its most recent earnings report. NIO Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

NIO Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$40.29B14.415.64%1.65%10.95%28.53%
72
Outperform
$1.21T24.2423.91%0.83%33.89%45.52%
70
Neutral
HK$182.07B8.6214.58%2.69%5.32%10.61%
62
Neutral
$6.84B11.412.80%3.87%2.70%-24.58%
41
Neutral
HK$57.22B-239.29%16.59%13.32%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9866
NIO Inc. Class A
27.90
-9.65
-25.70%
HK:1211
BYD Co
135.60
60.30
80.08%
HK:2333
Great Wall Motor Co
12.52
1.02
8.87%
HK:2208
Xinjiang Goldwind Science & Technology Co
6.60
3.04
85.50%

NIO Inc. Class A Corporate Events

NIO Inc. Files Annual Report for 2024, Reinforcing Regulatory Compliance
Apr 8, 2025

NIO Inc. has announced the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission. This regulatory announcement, made in compliance with Hong Kong Stock Exchange rules, underscores NIO’s commitment to transparency and regulatory adherence, potentially impacting investor confidence and stakeholder relations positively.

NIO Inc. Completes HK$4 Billion Share Offering to Strengthen Market Position
Apr 7, 2025

NIO Inc. announced the successful completion of a HK$4,030.13 million offering of 136,800,000 class A ordinary shares. This equity placement was conducted at an offering price of HK$29.46 per share, with the shares sold to non-U.S. persons in offshore transactions. The placement was facilitated by Morgan Stanley Asia Limited, UBS AG Hong Kong Branch, China International Capital Corporation Hong Kong Securities Limited, and Deutsche Bank AG, Hong Kong Branch. This move is expected to bolster NIO’s financial position and support its growth in the competitive electric vehicle market.

NIO Inc. Reports Strong Growth in Vehicle Deliveries for Q1 2025
Apr 1, 2025

NIO Inc. reported a significant increase in vehicle deliveries for March and the first quarter of 2025, with a 26.7% year-over-year rise in March and a 40.1% increase for the quarter. The company delivered a total of 42,094 vehicles in the first quarter, with cumulative deliveries reaching 713,658 by the end of March. The launch of the NIO ET9, a smart electric executive flagship vehicle, marks a new benchmark for executive smart electric vehicles, showcasing NIO’s full-stack technologies and industry-leading innovations.

NIO Inc. Announces Upsized HK$4,030 Million Share Offering
Mar 27, 2025

NIO Inc. announced the pricing of its upsized HK$4,030.13 million offering of 136,800,000 class A ordinary shares, with an offering price of HK$29.46 per share. The proceeds from this equity placement are intended for research and development of smart electric vehicle technologies, strengthening the balance sheet, and general corporate purposes. The placement is expected to close around April 7, 2025, and the shares will be offered to non-U.S. persons in offshore transactions. This move is part of NIO’s strategy to enhance its market position and support its technological advancements.

NIO Inc. Announces Proposed Offshore Equity Placement to Fund R&D and Strengthen Finances
Mar 27, 2025

NIO Inc. announced a proposed offering of up to 118,793,300 Class A ordinary shares in offshore transactions to non-U.S. persons, aiming to raise funds for research and development, balance sheet strengthening, and general corporate purposes. This equity placement reflects NIO’s strategic efforts to bolster its financial position and continue advancing its smart electric vehicle technologies, potentially impacting its market positioning and stakeholder interests.

NIO Inc. Reports Strong Growth in 2024 Financial Results
Mar 21, 2025

NIO Inc. announced its unaudited financial results for the fourth quarter and full year of 2024, highlighting significant growth in vehicle deliveries and revenues. The company delivered 72,689 vehicles in Q4 2024 and 221,970 vehicles for the full year, marking increases of 45.2% and 38.7% respectively from the previous year. Total revenues for the quarter reached RMB19,703.4 million, with full-year revenues at RMB65,731.6 million. This growth underscores NIO’s strong positioning in the electric vehicle market and its expanding customer base.

NIO Inc. Schedules Board Meeting to Approve Q4 and FY2024 Financial Results
Mar 11, 2025

NIO Inc. has announced that its board of directors will hold a meeting on March 21, 2025, to approve the company’s unaudited financial results for the fourth quarter and full year ending December 31, 2024. The results will be published on the same day, and an earnings conference call will be hosted by the company’s management to discuss these results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and future outlook.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.