Nio (NIO) AI Stock Analysis

• Market Cap: $10.23B
• Dividend Yield: N/A
• Average Volume (3M): 40.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 14.94%
• EPS Growth: 2.53%
• Country: US
• Employees: 45,635
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.14
• Shares Outstanding: 2,099,062,700
• 10 Day Avg. Volume: 40,220,591
• 30 Day Avg. Volume: 40,403,764
• PEG Ratio: 0.25
• Price to Book (P/B): 10.96
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -3.85
• Enterprise Value/Market Cap: 8.93
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 12.81
• Enterprise Value/Ebitda: -3.97
• 1Y Price Target: $6.03
• Price Target Upside: 35.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $4.50 ▲(1.35% Upside)

Nio's overall stock score is primarily impacted by its financial performance, which is weighed down by high leverage and negative profitability. While the earnings call provided some positive insights with strong delivery growth and improved margins, the technical analysis and valuation remain weak, reflecting ongoing challenges.

Positive Factors

Delivery Scale and Market Traction

Sustained double-digit annual delivery growth and near‑million cumulative deliveries signal expanding scale and brand traction. Larger volume supports manufacturing learning curves, stronger supplier leverage and durable market share gains in the premium EV segment over coming quarters.

Improving Vehicle and Overall Margins

Notable improvement in vehicle and overall gross margins reflects better product mix and pricing power from high‑margin models. Higher margins increase resilience to cost shocks, reduce cash burn, and materially improve the path toward sustained operating profitability.

Battery-as-a-Service and Swapping Capability

BaaS and battery swapping lower customer upfront costs and create recurring subscription revenue, enhancing lifetime value and retention. The integrated charging/swapping network differentiates the offering and supports aftermarket services, strengthening long‑term competitive moat.

Negative Factors

High Leverage

Very high leverage and a thin equity base materially raise financial risk in a capital‑intensive industry. Elevated debt limits flexibility for capex, geographic expansion or margin cushion during downturns and increases refinancing and interest burden over the medium term.

Historical Cash Flow Weakness

Persistent negative operating and free cash flow and weak cash conversion highlight operational inefficiencies and reliance on external financing. This undermines sustainable self‑funding of growth, increases liquidity risk, and can constrain strategic investments over 2–6 months.

Reduced R&D Spending Risks

A sizable cut in R&D can improve near‑term margins but risks eroding capabilities in autonomous driving, software and battery tech. In a rapidly evolving EV market, reduced innovation investment threatens product differentiation 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 include models like the ES8, ES6, and EC6. The company's revenue model is complemented by its innovative battery-as-a-service (BaaS) offering, allowing customers to purchase vehicles without owning the battery, thereby lowering the initial cost of the car. This subscription model provides a steady revenue stream as customers pay monthly fees for battery usage. Additionally, Nio earns income from software services and upgrades, as well as from selling energy solutions and charging infrastructure. Strategic partnerships with other companies in technology and automotive sectors also contribute to its earnings, enhancing product offerings and expanding market reach.

Nio Financial Statement Overview

Summary

Nio's financial performance is challenged by high leverage and negative profitability. Despite revenue growth, the company faces substantial financial risk due to negative cash flow and high 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.42B	65.73B	55.62B	49.27B	36.14B	16.26B
Gross Profit	7.13B	6.49B	3.05B	5.14B	6.82B	1.87B
EBITDA	-22.99B	-13.93B	-15.15B	-10.05B	-985.36M	-3.33B
Net Income	-24.31B	-22.66B	-21.15B	-14.56B	-10.57B	-5.61B
Balance Sheet
Total Assets	100.05B	107.60B	117.38B	96.26B	82.88B	54.64B
Cash, Cash Equivalents and Short-Term Investments	17.80B	22.09B	49.75B	39.06B	52.39B	42.38B
Total Debt	30.96B	33.82B	34.73B	23.71B	20.10B	9.52B
Total Liabilities	93.43B	94.10B	87.79B	68.62B	48.10B	27.47B
Stockholders Equity	-1.21B	5.97B	25.55B	23.87B	34.71B	27.17B
Cash Flow
Free Cash Flow	-16.50B	-16.99B	-15.72B	-10.84B	-2.11B	823.21M
Operating Cash Flow	-8.75B	-7.85B	-1.38B	-3.87B	1.97B	1.95B
Investing Cash Flow	-5.27B	-4.96B	-10.89B	10.39B	-39.76B	-5.07B
Financing Cash Flow	2.10B	1.77B	27.66B	-1.62B	18.13B	41.36B

Nio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NIO, the sentiment is Negative. The current price of 4.44 is below the 20-day moving average (MA) of 4.65, below the 50-day MA of 4.93, and below the 200-day MA of 5.16, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 19.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NIO.

Nio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LI	55 Neutral	$17.55B	29.03	6.53%	―	-9.99%	-54.75%
RIVN	53 Neutral	$17.62B	-4.62	-65.28%	―	28.21%	44.43%
XPEV	50 Neutral	$16.23B	-40.28	-9.01%	―	86.57%	51.35%
LCID	47 Neutral	$3.36B	-0.96	-61.12%	―	45.86%	22.13%
NIO	45 Neutral	$10.23B	-3.05	-296.44%	―	14.94%	2.53%
VFS	45 Neutral	$7.79B	-2.16	―	―	74.91%	-43.10%

Nio Corporate Events

NIO Near-Double January Deliveries and Surpass One Million EVs as New Driving AI Rolls Out

In January 2026, NIO delivered 27,182 vehicles, a 96.1% year-on-year increase, with 20,894 units from its premium NIO brand, 3,481 from its family-focused ONVO line and 2,807 from its FIREFLY small high-end EV brand, bringing cumulative deliveries to 1,024,774 as of January 31, 2026. On January 28, 2026, the company rolled out the latest version of its NIO WorldModel to more than 460,000 Banyan-equipped vehicles, introducing full closed-loop reinforcement learning for assisted and intelligent driving and optimizing smart parking and active safety, underscoring NIO’s push to enhance its technology stack and user experience as it passes the one‑million‑unit delivery milestone and continues investing in core smart EV technologies and its battery swapping and charging network.

The most recent analyst rating on (NIO) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Nio stock, see the NIO Stock Forecast page.

NIO Sets Record Deliveries in December and Full Year 2025, Nears 1 Million EVs Sold

On January 1, 2026, NIO reported that it delivered 48,135 vehicles in December 2025, a record monthly volume and a 54.6% year-on-year increase, with contributions from its NIO, ONVO and FIREFLY brands; fourth-quarter 2025 deliveries rose 71.7% year-on-year to a record 124,807 units, and full-year 2025 deliveries climbed 46.9% to 326,028 vehicles, bringing cumulative deliveries to 997,592 as of December 31, 2025. The company highlighted that its flagship premium SUV, the All-New ES8, surpassed 40,000 cumulative deliveries in December 2025 and set the fastest delivery record among battery electric vehicles priced above RMB400,000 in China, underscoring NIO’s growing scale, the traction of its multi-brand lineup, and its strengthened competitive position in the high-end EV segment supported by its extensive chargeable, swappable and upgradable power network.

The most recent analyst rating on (NIO) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Nio stock, see the NIO Stock Forecast page.

NIO Achieves Record Vehicle Deliveries in October 2025

In October 2025, NIO Inc. achieved a record-high monthly delivery of 40,397 vehicles, marking a 92.6% increase year-over-year. The company’s cumulative deliveries reached 913,182 vehicles by the end of October. The ONVO L90, a flagship SUV, sustained its growth momentum with over 10,000 monthly deliveries for three consecutive months, highlighting its strong position in the large SUV segment and contributing to the industry’s shift towards full electrification.

The most recent analyst rating on (NIO) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Nio stock, see the NIO Stock Forecast page.