Chinese electric-vehicle maker Nio Inc. reported first-quarter revenue of $3.7 billion, a 112.2% year-over-year surge that beat Wall Street expectations and sent a strong signal of its recovery momentum.
"Starting from the second quarter, the Company has entered an intensive new product launch and delivery cycle," said CEO William Bin Li in a news release, highlighting the upcoming launches of the All-New ES8 and models from the ONVO brand.
The performance represented a stark improvement from the previous year. The company's net loss narrowed dramatically to $48 million from $952 million in Q1 2025. Gross margin expanded to 19.0%, a significant increase from the year-ago period.
Nio's stock rose after the announcement, buoyed by a robust second-quarter forecast. The company expects to deliver between 110,000 and 115,000 vehicles, projecting revenue between $4.8 billion and $5.0 billion, which would represent growth of over 70% year-over-year at the midpoint.
Vehicle shipments climbed 98.3% year-over-year to 83,465 units. The flagship NIO brand accounted for 58,543 vehicles, while the recently introduced ONVO and FIREFLY brands contributed 13,339 and 11,583 units, respectively. This multi-brand strategy appears to be successfully capturing different segments of the market. In April, Nio delivered 29,356 vehicles, bringing its cumulative deliveries to over 1.1 million.
The company is expanding its product lineup with the premium ES9 flagship model, which began pre-sales in April, and the ONVO L80 SUV, which started deliveries in May. These launches are expected to be major growth drivers in the coming quarters.
The company's vehicle profitability margin expanded to 18.8%, up from 10.2% in the same quarter last year. This improvement was driven by a combination of higher volumes and cost discipline. Operating losses narrowed significantly to $42.6 million, and the company achieved a non-GAAP adjusted net profit of $6.3 million, a positive turn from an adjusted net loss of $867 million a year earlier.
The strong Q1 results and optimistic Q2 guidance suggest Nio is effectively navigating a competitive EV market. The successful rollout of new models across its brand portfolio and improving margins position the company for sustained growth.
The guidance raise signals management's confidence that demand for its new and existing models will remain strong. Investors will be closely watching the delivery figures for May and June to see if the company can meet its ambitious second-quarter targets.
This article is for informational purposes only and does not constitute investment advice.
