TLDR
- NIO (NYSE:NIO) will report quarterly earnings on March 4, with analysts expecting losses of ($0.42) per share and revenue of $20.19 billion
- Stock currently trading at $4.25, down from a high of $7.71, with most analysts giving it a “Hold” rating
- NIO’s vehicle deliveries grew 39% in 2024 to 221,970 units after slower growth in 2022-2023
- Vehicle margins improved from 9.5% in 2023 to projected 15% in Q4 2024
- Despite profitability concerns, NIO has growth catalysts including new vehicle models and European expansion
NIO Inc., the Chinese electric vehicle manufacturer, is set to release its quarterly earnings on Tuesday, March 4. Analysts expect the company to report a loss of $0.42 per share with revenue reaching $20.19 billion for the quarter.
The company’s stock closed at $4.25 on Monday, down $0.38 for the day. This represents a significant drop from its 52-week high of $7.71, though it remains above its low point of $3.61.
Trading volume was notably high, with nearly 80 million shares changing hands compared to an average volume of about 52 million. This increased activity suggests heightened investor interest ahead of the earnings announcement.
NIO’s market capitalization currently stands at approximately $8.87 billion. The company maintains a price-to-earnings ratio of -2.81 and a beta of 1.68, indicating higher volatility than the overall market.
The stock has seen declining prices in recent months. Its 200-day moving average price is $4.80, while the 50-day average sits at $4.36, both above the current trading price.
Wall Street analysts have become increasingly cautious about NIO’s prospects. Several firms have downgraded the stock since November 2024, including HSBC, JPMorgan Chase, Macquarie, and Goldman Sachs.
The consensus among analysts is a “Hold” rating with an average price target of $5.38. This represents a potential upside of about 26% from current levels but reflects tempered expectations compared to previous outlooks.
Despite analyst concerns, NIO has shown encouraging signs in its vehicle delivery numbers. The company delivered 221,970 vehicles in 2024, representing 39% growth from the previous year.
This marked an acceleration from the slower growth periods of 2022 and 2023, when deliveries increased by 34% and 31% respectively. The company has shown particular strength in its ET-series sedans and new Onvo smart vehicles.
Vehicle margins have also improved throughout 2024. After falling to 9.5% in 2023 from a high of 20.2% in 2021, margins have steadily recovered to an expected 15% for the fourth quarter of 2024.
The company continues to expand its presence in Europe despite challenges from higher tariffs on Chinese EVs. NIO plans to launch its Firefly compact EV in European markets during the first half of this year.
Analysts project revenue growth
January 2025 showed continued momentum with deliveries increasing 38% year-over-year. Analysts project revenue growth of 43% for 2025 and 24% for 2026.
Despite these positive trends, NIO remains unprofitable with a high debt-to-equity ratio of 7.6 as of Q3 2024. The company continues to receive significant support from the Chinese government, which helps mitigate bankruptcy concerns.
NIO’s stock currently trades at less than one times its projected 2025 sales, representing a significant discount compared to Tesla, which trades at approximately eight times its 2025 sales forecast.
For investors, NIO presents a mixed picture. The improved delivery numbers and margin expansion offer reasons for optimism, while profitability concerns and geopolitical tensions between the U.S. and China remain significant headwinds.
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