Nio Projects First Operating Profit, Surges in US & Hong Kong Markets

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Chinese electric vehicle startup reported its first-ever operating profit in the fourth quarter of last year, leading to a surge in its stock prices on both the US and Hong Kong exchanges.

The company’s shares closed up 7 percent at HKD39.10 (roughly USD5) in Hong Kong today, while its US-listed shares finished about 5.9 percent higher at USD4.70 yesterday.

Based on initial estimates, the company anticipates recording an adjusted operating profit between USD100 million and USD172 million in the fourth quarter, excluding stock-based compensation costs. This marks a significant turnaround from an adjusted operating loss of approximately CNY5.5 billion (around USD792.5 million) during the same period last year.

Under standard accounting rules, the company expects to have posted an operating profit ranging from approximately USD29 million to USD100 million for the quarter.

Since its founding in 2014, the company has faced ongoing criticism for persistent financial losses. In 2024, its net loss widened 8 percent year-over-year to CNY22.4 billion (about USD3.2 billion). In the first three quarters of last year, total net losses reached CNY15.7 billion, a 1 percent increase compared to the previous year.

In light of this situation, the company’s founder and CEO emphasized in an internal meeting last October that achieving profitability by the end of 2025 is crucial. He warned that failure to reach this goal could pose serious challenges to the company’s long-term growth.

The projected profit for the quarter ending in December 2025 was primarily driven by consistent growth in sales volume during the fourth quarter, improved vehicle margins due to a favorable product mix, and the company’s ongoing efforts to cut costs and boost efficiency.

The company introduced its third-generation ES8, a large all-electric SUV, in September last year, delivering 40,000 units within just 100 days. Thanks to the strong performance of this model, fourth-quarter deliveries soared 72 percent year-over-year to nearly 124,810 vehicles, setting a new quarterly record.

In January this year, the company delivered over 27,180 vehicles, a 96 percent increase compared to the same month last year but a 44 percent decline from December.