NEW YORK, March 19, 2026, 19:13 EDT
NIO Inc. picked up 1.2% on Thursday, closing at $5.89 and snapping a two-day skid. The stock pulled ahead even as the Nasdaq slipped and Tesla lost ground. Trading volume landed at roughly 29.9 million shares, notably under its 50-day average—hinting traders weren’t rushing in just yet.
The move is significant, with investors watching to see if NIO’s debut quarterly net profit has staying power in a challenging market. Last week, the company guided for first-quarter deliveries between 80,000 and 83,000 units. Vehicle margin stood at 18.1% in Q4, measuring profit per vehicle sale before accounting for broader costs.
XPeng’s U.S. shares moved up 2.1%, Li Auto ticked 0.3% higher, but Tesla dropped 3.2% after American regulators expanded their investigation into the company’s Full Self-Driving system. NIO sat in between on a choppy day for EV stocks, holding up better than a lot of high-growth names.
NIO is banking on bigger scale, tighter costs, and getting more cars out of China in 2026. President Qin Lihong put a number on it, targeting overseas sales in the thousands this year. But Chief Executive William Li flagged a persistent headache—memory chips. According to Li, the chip crunch could hike costs by 6,000 yuan to 10,000 yuan per car, and in the worst scenario, even force a production halt.
Li reported record quarterly deliveries for NIO, ONVO, and FIREFLY in its March 10 earnings statement. CFO Stanley Yu Qu called the fourth quarter’s non-GAAP operating profit of 1.25 billion yuan “a major milestone” for operating performance, referring to the company’s own adjusted earnings metric. SEC
Analysts aren’t convinced the reset is finished. On March 13, HSBC’s Yuqian Ding bumped NIO up to Buy from Hold and raised her price target to $6.80, citing “better visibility” for 2026 volume growth and a clearer path to stronger earnings as the automaker’s next product cycle approaches. Investing.com
The upside isn’t a done deal. DBS analysts Raphael Wut Hei Tse and Elizabelle Pang stuck to their Hold rating as of March 13, pointing to “sector headwinds” that might counteract improved operating leverage. They flagged a potential slowdown in China’s auto market and tough competition as the big risks. DBS Bank
Thursday’s move higher has the feel of a reprieve rather than a decisive surge. NIO lags its 52-week high by 26.6%, and now the spotlight turns to March demand. The challenge: hit those first-quarter delivery goals without eroding margins.
Related articles: NYSE:NIO
