NIO (NIO) Stock: Q1 Loss Widens as Revenue Misses Expectations Again

TLDR

Table of Contents

NIO posted Q1 2025 adjusted net loss of $873.6 million, 28% wider than previous year, missing analyst expectations
Revenue grew 22% to $1.67 billion but fell short of forecasts by $56.14 million for seventh miss in ten quarters
Vehicle deliveries jumped 40% to 42,094 units in Q1, with Q2 deliveries projected to grow 25.5% to 30.7%
Cash and investments dropped from $5.7 billion to $3.6 billion during the quarter, raising balance sheet concerns
Wall Street maintains Hold rating with $4.74 average price target, implying 26% upside despite execution challenges

NIO shares tumbled Tuesday after the Chinese electric vehicle maker delivered another disappointing quarterly report. The company posted an adjusted net loss of $873.6 million for Q1 2025, marking a 28% increase from the same period last year.

Revenue climbed 22% year-over-year to $1.67 billion. However, this figure missed analyst expectations by $56.14 million. This marks the seventh revenue miss in the past ten quarters for NIO.

The earnings per share came in at -$0.42, falling $0.05 below forecasts. Operating losses also expanded, rising 19% compared to the previous year. NIO has not reported a profitable quarter since its founding in 2014.

Despite the financial struggles, NIO showed strength in vehicle deliveries. The company delivered 42,094 vehicles in Q1 2025, representing a 40% increase from the same period last year. This delivery growth provides some optimism for the struggling automaker.

Looking ahead, NIO projects Q2 deliveries to rise between 25.5% and 30.7% year-over-year. Part of this expected growth stems from the company’s newly launched economy ONVO brand. However, the ONVO ramp has performed worse than expected according to industry observers.

Li Bin on Q1 2025 earnings call plants flags for NIO and ONVO monthly delivery targets by Q4:
NIO: 25,000
ONVO: 25,000
👀$NIO pic.twitter.com/fAiCnpH7Fy
— Lei 𝕏ing邢磊 (@leixing77) June 3, 2025

Cost Control Measures Taking Shape

Chief Financial Officer Stanley Yu addressed the company’s financial challenges during the earnings call. He outlined several cost control measures implemented since the first quarter. These include organizational restructuring and improvements across multiple business areas.

The improvements span the supply chain, research and development, sales, and service operations. Yu stated the company aims to achieve structural cost improvements starting in the second quarter. These measures represent NIO’s attempt to control its expanding losses.

Balance Sheet Concerns Mount

Investor Bill Maurer, who follows NIO closely, expressed cautious optimism about the company’s prospects. He acknowledged that NIO has a solid growth story ahead but emphasized the need for better execution. Maurer pointed out that while Q2 delivery outlook shows growth, it’s not exceptional given the addition of new sub-brands.

The investor highlighted concerns about NIO’s weakening balance sheet. Cash and investments fell from $5.7 billion to $3.6 billion during the past quarter. This decline raises questions about the company’s financial stability.

Maurer suggested that more value-diluting capital raises could be on the horizon. The balance sheet weakness combined with continued misses of growth targets has made him skeptical about the company’s near-term prospects. He maintains a Hold rating on NIO shares.

Wall Street analysts share similar sentiment about NIO’s performance. The stock carries a consensus Hold rating based on 2 Buy, 7 Hold, and 1 Sell recommendations. The 12-month average price target stands at $4.74, implying 26% upside from current levels.

NIO shares dropped nearly 4% in early trading following the earnings announcement. The stock has declined 23% year-to-date in 2025. Revenue guidance for the current quarter came in below expectations, raising concerns when analysts had already been lowering their forecasts.

The company’s margins are not improving fast enough to limit large losses, according to Maurer. This presents ongoing challenges for NIO as it competes in a market dominated by Tesla and BYD.

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