Institutional Investor Makes Major Bet on Nio Stock

A prominent London-based investment firm has placed a substantial wager on Chinese electric vehicle manufacturer Nio. RWC Asset Management significantly expanded its position during the third quarter, acquiring approximately 2.7 million American depositary shares of the automaker. This purchase, valued at an estimated $14.55 million, represents a strong vote of confidence despite the stock having already appreciated by 51.6% this year.

Nio's equity has demonstrated remarkable strength against broader market indices, posting impressive returns across multiple timeframes. The company's recent performance metrics include a three-month gain of 45.76%, year-to-date advancement of 61.47%, and twelve-month return of 21.17%. This sustained upward momentum appears to be attracting institutional investors like RWC, who seem to be establishing long-term positions at current valuation levels.

Operational Milestones and Growth Metrics

The company's fundamental progress supports this optimistic institutional positioning. Nio recently celebrated a significant operational achievement—completing its 90 millionth battery swap globally. This proprietary Battery-as-a-Service system provides the automaker with a distinctive competitive edge by directly addressing two primary concerns in electric vehicle adoption: range anxiety and extended charging durations.

Delivery statistics further validate Nio's expansion trajectory. The company reported September 2025 deliveries of 34,749 vehicles, representing a substantial 64.1% year-over-year increase. Throughout the entire third quarter, Nio delivered 87,071 vehicles, marking a 40.8% improvement compared to the same period last year.

Should investors sell immediately? Or is it worth buying Nio?

Challenges and Market Sentiment

Despite these positive indicators, Nio faces headwinds from ongoing legal proceedings. A $600 million lawsuit concerning revenue recognition practices related to battery leasing agreements has created uncertainty among investors and contributed to stock price volatility. The litigation continues to influence market sentiment around the company.

Nevertheless, institutional investors appear to view current price levels as an attractive entry point. Market capitalization stands at approximately $15.97 billion, while trading volume has remained elevated with over 33 million shares changing hands recently.

Upcoming Catalyst

Market participants are now looking toward the next potential catalyst: Nio's quarterly earnings report scheduled for November 19. Financial analysts project the company will report a loss of $0.22 per share alongside revenue of $3.13 billion. These results will provide crucial insight into whether the company's operational growth is translating into improved financial performance.