Nio (NIO) AI Stock Analysis

• Market Cap: $14.81B
• Dividend Yield: N/A
• Average Volume (3M): 97.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 9.60%
• EPS Growth: -5.91%
• Country: US
• Employees: 45,635
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.26
• Shares Outstanding: 1,946,478,900
• 10 Day Avg. Volume: 109,537,515
• 30 Day Avg. Volume: 97,404,212
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.43
• Enterprise Value/Ebitda: -0.43
• 1Y Price Target: $6.63
• Price Target Upside: -11.24% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 51 Neutral
• Price Target: $5.50 ▼(-26.37% Downside)

Nio's overall stock score is primarily influenced by its financial performance, which is currently weak due to high leverage and negative cash flows. The earnings call provided a positive outlook with strong delivery growth and financial improvements, but valuation remains a concern with a negative P/E ratio. Technical analysis shows positive momentum, but the financial risks weigh heavily on the overall score.

Positive Factors

Revenue Growth

Nio's consistent revenue growth highlights its expanding market presence and product adoption, which are crucial for long-term sustainability.

Innovative Business Model

Nio's BaaS model lowers upfront costs for consumers and generates stable, recurring revenue, enhancing customer retention and financial stability.

Market Expansion

Expanding infrastructure supports Nio's global reach and enhances customer convenience, strengthening its competitive position in the EV market.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting Nio's ability to invest in growth initiatives and affecting long-term financial health.

Negative Cash Flow

Negative cash flow indicates inefficiency in operations, which can hinder Nio's ability to fund new projects and manage financial obligations.

Decreased Vehicle Margin

Declining vehicle margins suggest pricing pressure or cost challenges, which could impact profitability and long-term competitiveness.

Nio Business Overview & Revenue Model

Company Description

NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company also offers power solutions, including Power Home, a home charging solution; Power Swap, a battery swapping service; Power Charger and Destination Charger; Power Mobile, a mobile charging service through charging vans; Power Map, an application that provides access to a network of public chargers and their real-time information; and One Click for Power valet service. In addition, it provides repair, maintenance, and bodywork services through its NIO service centers and authorized third-party service centers; statutory and third-party liability insurance, and vehicle damage insurance through third-party insurers; repair and routine maintenance; roadside assistance; courtesy vehicle services; data packages; and auto financing and financial leasing services. Further, the company involved in the provision of energy and service packages to its users; design and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after sales management activities. Additionally, it offers NIO Certified, a used vehicle inspection, evaluation, acquisition, and sales service. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was incorporated in 2014 and is headquartered in Shanghai, China.

How the Company Makes Money

Nio generates revenue primarily through the sale of its electric vehicles, which includes models such as the ES8, ES6, EC6, and ET7. In addition to vehicle sales, the company has established a unique battery-as-a-service (BaaS) model, allowing customers to purchase vehicles without the battery and subscribe to battery services for a lower upfront cost. This model not only provides recurring revenue through subscription fees but also encourages more customers to adopt electric vehicles. Furthermore, Nio earns revenue from its service offerings, including maintenance, warranty services, and software updates. The company has formed strategic partnerships with various suppliers and technology firms to enhance its manufacturing capabilities and expand its technology portfolio, contributing to its revenue growth. Additionally, Nio has been actively expanding its presence in international markets, which could further diversify and increase its revenue streams.

Nio Financial Statement Overview

Summary

Nio's financial performance is challenged by high leverage and negative cash flow. Despite revenue growth, profitability remains elusive with negative EBIT and net income. The balance sheet shows high financial risk due to increased debt levels.

Income Statement

Nio shows consistent revenue growth with a 18.2% increase from 2023 to 2024. However, profitability remains a challenge as evidenced by negative EBIT and net income. The gross profit margin stands at 9.9% in 2024, down from 5.5% in 2023, indicating some improvement but still low for the industry.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 5.67 in 2024, up significantly from 1.98 in 2023. Stockholders' equity has decreased, and the equity ratio is only 5.5%, suggesting increased financial risk. Return on equity is negative due to ongoing losses.

Cash Flow

Operating cash flow is negative, reflecting operational challenges. Free cash flow also remains negative, with a decline from 2023 to 2024, indicating strained liquidity. The ratio of operating cash flow to net income is below 1, suggesting inefficiency in converting income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.73B	55.62B	49.27B	36.14B	16.26B
Gross Profit	6.49B	3.05B	5.14B	6.82B	1.87B
EBITDA	-13.93B	-15.15B	-10.05B	-985.36M	-3.33B
Net Income	-22.66B	-21.15B	-14.56B	-10.57B	-5.61B
Balance Sheet
Total Assets	107.60B	117.38B	96.26B	82.88B	54.64B
Cash, Cash Equivalents and Short-Term Investments	33.84B	49.99B	39.41B	52.48B	42.42B
Total Debt	33.82B	34.73B	23.75B	20.16B	9.52B
Total Liabilities	94.10B	87.79B	68.62B	44.82B	22.78B
Stockholders Equity	5.97B	25.55B	23.87B	34.71B	27.17B
Cash Flow
Free Cash Flow	-16.99B	-15.72B	-10.84B	-2.11B	823.21M
Operating Cash Flow	-7.85B	-1.38B	-3.87B	1.97B	1.95B
Investing Cash Flow	-4.96B	-10.89B	10.39B	-39.76B	-5.07B
Financing Cash Flow	1.77B	27.66B	-1.62B	18.13B	41.36B

Nio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NIO, the sentiment is Positive. The current price of 7.47 is above the 20-day moving average (MA) of 6.62, above the 50-day MA of 5.64, and above the 200-day MA of 4.48, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 66.36 is Neutral, neither overbought nor oversold. The STOCH value of 72.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NIO.

Nio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LI	76 Outperform	25.61B	24.50	11.33%	―	7.49%	-21.06%
XPEV	55 Neutral	20.38B	-35.50	-18.51%	―	66.53%	48.17%
LCID	52 Neutral	7.06B	-2.00	-95.34%	―	39.01%	7.12%
NIO	51 Neutral	$14.81B	―	-329.46%	―	9.60%	-5.91%
RIVN	49 Neutral	19.16B	-4.87	-57.76%	―	2.73%	45.63%
VFS	44 Neutral	7.51B	-2.28	45.44%	―	79.49%	-22.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nio Corporate Events

Nio Releases Q2 2025 Financial Results with Key Reconciliation Details

On September 2, 2025, Nio Inc. released its unaudited financial results for the second quarter and six months ending June 30, 2025. The interim report, published under the Hong Kong Listing Rules, includes a reconciliation of financial statements between U.S. GAAP and IFRS. This disclosure is significant as it provides transparency in financial reporting for stakeholders and aligns with international accounting standards, potentially impacting investor confidence and market positioning.

NIO Reports Strong Q2 2025 Growth Amid New Launches

NIO Inc. reported its unaudited financial results for the second quarter of 2025, showing significant growth in vehicle deliveries and revenues. The company delivered 72,056 vehicles, marking a 25.6% increase from the previous year and a 71.2% increase from the first quarter of 2025. Total revenues reached RMB19,008.7 million, a 9.0% year-over-year increase. Despite a net loss of RMB4,994.8 million, the company showed improvement with a 26.0% decrease in losses from the first quarter. Recent developments include the commencement of deliveries for the ONVO L90 SUV and the unveiling of the NIO All-New ES8, indicating a strategic focus on expanding its product lineup and enhancing market presence.

NIO Inc. Sets New Record with Over 31,000 Deliveries in August 2025

In August 2025, NIO Inc. achieved a record-high monthly delivery of 31,305 vehicles, marking a 55.2% increase year-over-year. This milestone contributes to a year-to-date total of 166,472 deliveries, a 30% rise from the previous year, and brings the company’s cumulative deliveries to 838,036 vehicles. This achievement underscores NIO’s strong market position and growth in the smart electric vehicle sector.