NIO Shares Fall as Q2 Loss Widens Despite Record Vehicle Deliveries
The electric vehicle maker missed analyst revenue forecasts, sparking investor concern over its path to profitability amid rising sales.
Shares of NIO Inc. (NYSE: NIO) dropped approximately 2% after the company , which revealed a wider-than-expected net loss despite setting a new record for vehicle deliveries. The report highlighted the growing pressure on the electric vehicle maker to balance expansion with profitability.
For the quarter ending June 30, 2025, the Shanghai-based automaker announced total revenues of RMB19.01 billion (US$2.65 billion), an 8.9% increase from the previous year. However, this figure fell short of Wall Street analysts' consensus forecast of $2.73 billion. The company's net loss widened to RMB5.14 billion (US$720.8 million), a concerning figure for investors looking for a clearer path to profitability.
The mixed results came even as NIO achieved a significant operational milestone. The company's to a record 72,056 units. While gross margin saw an improvement to 10.0%, the vehicle-specific margin slightly decreased to 10.3%, suggesting that the cost of production and product mix are impacting profitability on each car sold.
Investors are now weighing the impressive delivery growth against the ongoing losses. The company's performance reflects a broader industry challenge of scaling production profitably amid intense competition and high development costs for new technology. NIO management is set to provide more color on their strategy during an scheduled for September 2, 2025. A bright spot noted in the report was a 55% year-over-year surge in August deliveries, indicating strong momentum from recent model launches that could influence the company's performance in the third quarter.