Nio Shares Face Critical Test Amidst Pre-Earnings Decline

As Nio prepares to release quarterly results, its stock is experiencing one of its most prolonged downturns in recent memory, creating a stark contrast with record operational performance and a significant institutional vote of confidence. The Chinese electric vehicle manufacturer finds itself at a crossroads, with market sentiment and fundamental data telling conflicting stories.

While retail investors have been selling, Aspects Management from Hong Kong has demonstrated substantial conviction with a major purchase. The fund acquired 35 million Nio shares just ahead of the quarterly earnings announcement, creating a notable counter-narrative to the prevailing negative sentiment. This substantial institutional backing emerges during a period where the stock has registered seven consecutive declining sessions, despite the absence of any fundamentally negative company news.

The current weakness represents a concerning trend for shareholders. Since reaching its peak in October, Nio's equity has surrendered more than one-fifth of its value, navigating its most extended downward trajectory in months.

Operational Success Creates Unexpected Challenges

Paradoxically, Nio's current predicament stems partly from its product success. Extraordinary consumer response to the new Onvo L90 model has forced management to reschedule the L80 SUV launch timeline. Originally planned for late 2025, the introduction has now been pushed to the first half of 2026. While such delays typically concern investors, this particular postponement underscores the remarkable market reception of Nio's latest vehicle lineup.

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

October delivery statistics reveal the company's operational strength. Nio handed over 40,397 vehicles during the month, representing a substantial 92.6% year-over-year increase and approaching record territory. Growth was evident across all three of the automaker's brands, with the core Nio brand registering its first monthly gain after five consecutive months of declines.

November 25th: The Crucial Moment of Truth

All attention now focuses on the quarterly report scheduled for November 25th. Although the company's 87,071 unit deliveries fell within projected ranges, the financial metrics will ultimately determine market direction. Investors will meticulously examine margin progression, operational expenditures, and cash flow dynamics, alongside management's guidance for the critical final quarter.

The central question remains whether Nio can leverage solid financial results to overcome current skepticism and reverse the downward trend. The trading session following the earnings release will deliver the verdict—revealing whether the Hong Kong fund's multimillion-dollar position reflected foresight or whether the apprehensive market accurately anticipated challenges ahead.