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NIO Inc. Class A (HK:9866)
:9866
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NIO Inc. Class A (9866) AI Stock Analysis

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HK:9866

NIO Inc. Class A

(9866)

Rating:50Neutral
Price Target:
HK$39.00
▲(2.23%Upside)
NIO Inc.'s overall stock score reflects the company's strong revenue growth and positive market momentum but is hampered by significant financial challenges, including negative profitability and high debt. The mixed sentiment from the earnings call further tempers the score, with operational inefficiencies and cost challenges persisting.
Positive Factors
Market Position
NIO is recognized as a pioneer and leading company in the premium smart electric vehicle market.
Product Innovation
Major product cycle refresh with seven new models to lift sales, estimating a shipment volume CAGR of ~40%.
Sales Strategy
New models to boost sales with the launch of Firefly and ramp-up of multiple models under its multi-brand strategy.
Negative Factors
Financial Performance
Net losses widened, with SG&A expenses increasing over 40% year-over-year to clear old inventory.
Guidance and Results
Weaker than expected 1Q25 guidance and 4Q24 results could negatively impact share price performance.
Market Competition
New model sales could be slower than expected due to intense market competition from 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. Class A (9866) is a Chinese multinational automobile manufacturer specializing in designing and developing premium electric vehicles (EVs). Founded in 2014, NIO is headquartered in Shanghai, China, and is known for its innovative approach to electric mobility, offering smart, high-performance EVs integrated with advanced autonomous driving technologies. The company’s core products include electric SUVs and sedans, and it is recognized for its commitment to creating a user-centric brand with a focus on design, technology, and sustainability.
How the Company Makes MoneyNIO Inc. primarily generates revenue through the sale of electric vehicles, including various models of SUVs and sedans. Additionally, the company offers value-added services such as battery swapping, power solutions, and an expanding network of charging stations, which further contribute to its revenue streams. NIO also provides a subscription-based Battery-as-a-Service (BaaS) model, allowing users to lease batteries separately from vehicle ownership, thus enhancing affordability and customer flexibility. Significant partnerships with technology and automotive companies help NIO enhance its product offerings and expand its market presence, further driving sales and revenue.

NIO Inc. Class A Earnings Call Summary

Earnings Call Date:Jun 03, 2025
(Q1-2025)
|
% Change Since: 38.73%|
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 management. Persistent negative net income, declining gross profit margins, high debt levels, and negative cash flows highlight operational inefficiencies and financial risks.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue65.73B55.62B49.27B36.14B16.26B
Gross Profit6.49B3.05B5.14B6.82B1.87B
EBITDA-18.50B-15.15B-10.05B-985.36M-3.33B
Net Income-22.66B-21.15B-14.56B-10.57B-5.30B
Balance Sheet
Total Assets107.60B117.38B96.26B82.88B54.64B
Cash, Cash Equivalents and Short-Term Investments33.47B49.75B39.06B52.39B39.51B
Total Debt33.77B50.38B23.71B20.10B9.43B
Total Liabilities94.10B91.65B68.62B44.82B27.47B
Stockholders Equity5.97B25.55B23.87B34.71B27.17B
Cash Flow
Free 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-4.96B-10.89B10.39B-39.76B-5.07B
Financing Cash Flow1.77B27.66B-1.62B18.13B41.36B

NIO Inc. Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price38.15
Price Trends
50DMA
29.53
Positive
100DMA
30.82
Positive
200DMA
34.18
Positive
Market Momentum
MACD
2.62
Negative
RSI
74.17
Negative
STOCH
81.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9866, the sentiment is Positive. The current price of 38.15 is above the 20-day moving average (MA) of 31.22, above the 50-day MA of 29.53, and above the 200-day MA of 34.18, indicating a bullish trend. The MACD of 2.62 indicates Negative momentum. The RSI at 74.17 is Negative, neither overbought nor oversold. The STOCH value of 81.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$196.25B8.7624.35%0.10%
73
Outperform
HK$234.35B28.4312.25%9.84%-30.05%
70
Neutral
HK$187.81B9.1615.09%0.28%5.32%10.61%
63
Neutral
$71.33B37.14-0.98%0.58%-18.42%-82.40%
57
Neutral
HK$26.04B4.09-2.03%5.50%-0.23%-68.02%
54
Neutral
HK$143.36B-15.50%49.80%50.02%
50
Neutral
HK$79.23B-239.29%22.93%4.35%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9866
NIO Inc. Class A
38.15
4.50
13.37%
HK:9868
XPeng, Inc. Class A
75.30
44.05
140.96%
HK:2015
Li Auto, Inc. Class A
116.90
43.30
58.83%
HK:2238
Guangzhou Automobile Group Co
3.22
0.48
17.69%
HK:2333
Great Wall Motor Co
13.86
3.81
37.95%
HK:0175
Geely Automobile Holdings
19.46
11.80
153.98%

NIO Inc. Class A Corporate Events

NIO Inc. Successfully Passes Resolution at 2025 Annual General Meeting
Jun 25, 2025

NIO Inc. announced that the proposed resolution from their annual general meeting notice dated May 23, 2025, was successfully passed during the meeting on June 25, 2025. This development reflects the company’s ongoing governance processes and may influence its strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:9866) stock is a Buy with a HK$68.10 price target. To see the full list of analyst forecasts on NIO Inc. Class A stock, see the HK:9866 Stock Forecast page.

NIO Inc. Schedules AGM to Discuss Auditor Reappointment
May 23, 2025

NIO Inc. has announced its upcoming Annual General Meeting (AGM) scheduled for June 25, 2025, in Shanghai, China. The primary agenda is to re-appoint PricewaterhouseCoopers Zhong Tian LLP as the company’s auditor for the upcoming year. This meeting is significant for stakeholders as it involves voting on key resolutions that could impact the company’s governance and financial oversight.

The most recent analyst rating on (HK:9866) stock is a Buy with a HK$62.50 price target. To see the full list of analyst forecasts on NIO Inc. Class A stock, see the HK:9866 Stock Forecast page.

NIO Inc. to Announce Q1 2025 Financial Results
May 21, 2025

NIO Inc. has announced a board meeting scheduled for June 3, 2025, to approve and publish its unaudited financial results for the first quarter of 2025. The company will also host an earnings conference call on the same day to discuss these results, which will be accessible via a live webcast on their investor relations website.

The most recent analyst rating on (HK:9866) stock is a Buy with a HK$68.10 price target. To see the full list of analyst forecasts on NIO Inc. Class A stock, see the HK:9866 Stock Forecast page.

NIO Inc. Sets Record Date for Annual General Meeting
May 8, 2025

NIO Inc. has announced the record date for its upcoming annual general meeting of shareholders, set for May 23, 2025. This meeting will allow holders of Class A and Class C ordinary shares to vote as a single class, with specific instructions provided for those holding shares through various depository services. The announcement underscores the company’s structured approach to shareholder engagement and governance, reflecting its commitment to maintaining transparency and inclusivity in its corporate operations.

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.Date of analysis: Jul 24, 2025