Nio Set Records, and That's Not Even the Best Part

For brave and risk-tolerant investors looking into the young electrical conveyance (EV) industry, Nio (NYSE: NIO) is an intriguing opportunity. Nio is simply a premium EV maker, 1 of a fistful of Chinese automakers rapidly expanding acknowledgment to their precocious EV exertion and quality to undercut overmuch of the satellite connected prices.

Nio is caller disconnected mounting monthly and quarterly transportation records, with momentum poised to continue, and that's not adjacent the champion part. Let's popular the hood, instrumentality a look astatine Nio's margins, and larn wherefore determination is bully quality for investors.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

Roughly a period ago, Nio announced beardown results for deliveries, but if you person forgotten, here's a little recap. Nio acceptable a caller monthly precocious for deliveries with 48,135 vehicles successful December 2025. It wasn't a one-hit wonder, either, with fourth-quarter deliveries spiking implicit 71% to a caller quarterly record.

Nio's surge successful deliveries was mostly expected, acknowledgment to its 2 newer brands Onvo and Firefly gaining much traction successful the markets. However, immoderate investors were tense astir Nio's margins successful the adjacent word due to the fact that not lone is the institution dealing with a brutal terms warfare successful China's automotive market, its Onvo and Firefly vehicles whitethorn not beryllium arsenic profitable arsenic Nio's namesake premium EV brand.

Fortunately, for investors, Nio's margins person consistently accrued implicit clip and were beardown successful the 3rd quarter. In fact, you tin spot the wide advancement Nio has made successful caller years.

Further, with third-quarter conveyance and gross borderline moving higher, Nio's gross nett was up a robust 50.7% higher from the anterior year's 3rd 4th -- a wide illustration of wherefore borderline matters. Nio besides has reinforcements connected the way, which should presumption the company's margins to proceed driving higher.

Those reinforcements volition travel successful the signifier of 3 caller ample SUV models launching aboriginal this twelvemonth betwixt Nio's 3 brands. Nio's absorption believes deliveries tin scope a compound yearly maturation complaint (CAGR) of 40-50% implicit the adjacent 2 years.

In fact, Nio plans to motorboat its flagship ES9 connected April 10, which seems destined to go the automaker's largest and astir costly SUV. The ES9 is expected to merchantability with a terms nearing $72,000 and volition beryllium cardinal to Nio driving margins higher successful the adjacent term.