Nio’s Profitability Target Faces Mounting Headwinds

Despite achieving unprecedented delivery figures, Chinese electric vehicle manufacturer Nio is witnessing a severe stock downturn. The equity has declined for seven consecutive trading sessions, plummeting over 14% in a single week. This market reaction stems from concrete operational challenges, including an impending battery supply shortage and strategic pivots from leadership, casting uncertainty over Nio’s goal to achieve its first non-GAAP operating profit this quarter.

A significant supply constraint is emerging over China’s EV sector. A government purchase subsidy is scheduled to expire in December 2025, triggering a consumer rush and exploding demand. Compounding this, the rapidly expanding energy storage market is competing for the same lithium iron Read more...