NEW YORK, March 21, 2026, 11:05 EDT
NIO’s U.S.-traded ADRs slid 7.8% to $5.43 on Friday, turning over around 52.8 million shares. The selloff came as Chinese EV stocks lost ground—Xpeng flagged weaker-than-expected Q1 revenue, pulling the sector down, and Li Auto finished lower too.
This shift comes just as NIO managed to steady itself, turning a quarterly net profit for the first time and projecting a more upbeat first-quarter forecast. Yet, Friday’s slide signaled investors remain wary, lumping the stock back into the battered China EV basket—where concerns about demand can easily overshadow stronger results.
Xpeng is projecting first-quarter revenue between 12.20 billion and 13.28 billion yuan—a sharp miss versus the 17.38 billion yuan analysts were looking for, Reuters reported. The newswire also cited Benchmark Mineral Intelligence data showing China’s new electric and plug-in hybrid registrations tumbled 32% last month. Third Bridge’s Rosalie Chen pointed out that Xpeng’s ability to grow sales this year could hinge on fresh models and international sales. That has implications for peers like NIO and BYD.
On paper, NIO’s guidance remains solid. Back on March 10, the company forecast it would deliver between 80,000 and 83,000 vehicles for the first quarter, with revenue falling somewhere in the range of 24.482 billion yuan to 25.176 billion yuan. Chief executive William Bin Li called 2025 an “accelerating growth trajectory,” saying NIO plans to keep pouring money into new models and its battery swapping network—a system letting drivers swap out empty packs for fresh ones in just a few minutes. NIO Inc.
Stanley Yu Qu, the chief financial officer, pegged fourth-quarter vehicle margin at 18.1%, describing the move to adjusted operating profit as “a major milestone.” Gross margin came in at 17.5%. Net profit attributable to ordinary shareholders: 122.4 million yuan. NIO Inc.
Volume is still climbing. On March 1, NIO reported a 57.6% jump in February deliveries compared to last year, reaching 20,797 vehicles. That brings the year-to-date tally to 47,979, up 77.3%. It’s something management can hold up—even with doubts swirling over how sustainable those gains are in a softening home market.
There’s a snag. President Qin Lihong told Reuters this month that NIO is aiming to move thousands of cars overseas this year, part of a broader two- to three-year push beyond China’s borders. On another front, CEO William Li flagged the “memory chip is indeed a problem,” cautioning that shortages may tack on 6,000 yuan to 10,000 yuan per vehicle. In the worst scenario, production might even stop—though NIO isn’t planning any price hikes. Reuters
The stock’s stuck in the same bind: numbers are up, but sector headwinds haven’t let go. According to Reuters data, 27 analysts were still watching NIO closely as of March 12, with the consensus “Outperform.” Now, what matters is straightforward — can March deliveries and margins stack up against the new guidance, especially with rivals like Xpeng and Li Auto flagging tougher conditions ahead. Reuters
