NEW YORK, May 22, 2026, 06:04 EDT
NIO Inc. ADRs traded lower in Friday’s early premarket, despite the Chinese EV maker reporting a strong first-quarter revenue jump and offering an improved delivery forecast.
Shares traded at $5.29 as of 6:03 a.m. EDT, a drop of 5.5% from Thursday’s close at $5.60, MarketScreener data showed. NYSE regular trading had not opened yet; its main hours run 9:30 a.m. to 4:00 p.m. ET. The exchange’s 2026 calendar marks Memorial Day as Monday, May 25, not Friday.
NIO’s move stands out as the company’s profit turnaround remains unproven. Investors are watching to see if a slate of more expensive models can defend margins while China’s EV market gets busier and expenses climb.
NIO reported it delivered 83,465 vehicles in the first quarter, up 98.3% from the same period last year. That figure includes 58,543 vehicles from its NIO brand, 13,339 ONVO vehicles, and 11,583 FIREFLY models. Total revenue rose 112.2% to RMB25.53 billion, or $3.70 billion. Vehicle margin increased to 18.8%, up from 10.2% in last year’s first quarter.
NIO posted a net loss of RMB332.1 million, or $48.1 million, under GAAP. On a non-GAAP basis, which excludes things like share-based compensation, the company reported adjusted net profit of RMB43.5 million.
NIO founder and CEO William Bin Li said the company is in an “intensive new product launch and delivery cycle,” with second-quarter deliveries expected at 110,000 to 115,000 vehicles. CFO Stanley Yu Qu told analysts that vehicle margin improved quarter-on-quarter for the fourth time in a row and that “cash reserves continued to increase.” NIO Inc.
NIO is guiding second-quarter revenue at RMB32.78 billion to RMB34.44 billion, or $4.75 billion to $4.99 billion, which would be up 72.4% to 81.2% year over year. The company’s ES9 flagship executive SUV is set to launch and begin deliveries on May 27. NIO’s ONVO brand launched the L80 on May 15, with deliveries now underway.
The schedule is messy. Xpeng rolled out a high-end full-size SUV this week, Reuters said, offering a 10,000-yuan temporary discount as it goes after buyers in the same premium SUV segment where BYD, Li Auto, and NIO are looking to make gains.
Jefferies nudged its NIO price target up to HK$47.60 from HK$47.50 but left its Hold rating unchanged, an MT Newswires item on MarketScreener said Friday. Not every analyst has followed the rally sharply higher.
Margin pressure is a risk here. On the earnings call, Qu said higher prices on memory chips, lithium carbonate, nickel-cobalt-manganese battery materials, copper, and aluminum will push up NIO’s average cost per vehicle by more than RMB10,000. He put expected vehicle margin at about 17% to 18% for the second quarter and the full year. NIO aims to counter those costs with higher-margin ES8 and ES9 models, steady pricing, and talks with suppliers.
The downside for NIO looks plain. If ES9 and ONVO demand falls short, or if input costs stay high, NIO could have to pick between keeping prices or fighting for share. Right now, Friday’s early action shows traders aren’t betting on things getting easier.
