William Li says market undervalues Nio, overlooks its AI and energy businesses

NIO reported Q2 revenue growth of 69.1% YoY, gross profit up 211.3% YoY, and three consecutive profitable quarters. Despite strong performance, its stock price fell 6.39% on the day of the report. NIO's gross margin and automotive gross margin were 18.4% and 18.5%, respectively, but both declined slightly from Q1. The company cited increased R&D and sales expenses, as well as rising costs, for the decline in net profit compared to Q1. NIO delivered 107,658 vehicles in Q2, with its three brands s

Nio Inc. reported its third straight quarter of adjusted profitability, with Q2 deliveries rising 50% YoY to 107,000 vehicles. Revenue increased 80.1% to 29.1 billion yuan, driven by strong sales of premium models.

Nio (NIO) dropped 4% after J.P. Morgan downgraded it to Neutral and cut its price target to $4.50, citing weak EV demand and price competition in China. The firm reduced its 2027 earnings forecast by 52%. Peers XPeng (XPEV) and Li Auto (LI) also slipped 1%. Nio reported an 18.5% vehicle gross margin in Q2 but faces cost increases in H2.

J.P. Morgan downgraded NIO (NIO) to Neutral, cutting its price target to $4.50 from $7.00 due to weak demand in China's passenger-vehicle market and intensifying competition. The brokerage cited cost pressures and moderating growth, forecasting lower revenue and earnings. NIO's Q2 vehicle gross margin was 18.5%, but further pressure is expected. J.P. Morgan prefers BYD and Geely among Chinese automakers.

NIO (NYSE: NIO) announced that its third-gen ES8 SUV is nearing 150,000 deliveries in September 2026, with August deliveries reaching 10,999 units. The company reported Q2 2026 revenue of 32.14 billion CNY (up 69.1% YoY) and an operating profit of 210 million CNY. NIO guided Q3 deliveries to 108,000-111,000 vehicles, implying 24.0%-27.5% YoY growth. The ES8 is the top-selling large SUV in China, according to the China Passenger Car Association.

NIO stock fell 5.2% to HK$29.44, hitting a 52-week low, after Q2 2026 earnings showed revenue up 69.1% YoY to RMB 32.14B and deliveries up 49.4% to 107,658 units. Guidance for Q3 revenue (RMB 33.3-34.1B) missed consensus (RMB 36B), and August deliveries grew 14.5% YoY, raising demand concerns. The Hang Seng Index also declined 0.8%.