Quick Read
-
NIO fell 25% after Q2 revenue missed consensus and Q3 guidance disappointed, pushing shares below J.P. Morgan’s downgrade price target of $4.50.
-
XPeng dropped only 13% and Rivian just 2% over the same stretch, framing Nio’s selloff as company-specific rather than a broad sector decline.
-
Nio’s H1 gross profit surged 282% and vehicle margins doubled to 18.5%, but chip cost inflation of RMB 14,000 per car is squeezing revenue per vehicle.
-
Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and NIO didn’t make the cut. Enter your email to see the names that beat NIO. The report is free. Enter your email and see if any of your stocks made the cut.
Shares of Nio (NYSE:NIO) are extending losses on Thursday afternoon, with the stock down 3% to $3.61. The move takes Nio’s past-month decline to 25% and leaves the shares trading below the $4.50 price target J.P. Morgan set on September 2 alongside its downgrade of NIO stock.
The slide dates to the company’s Q2 2026 earnings on September 1. Nio’s revenue came in short of consensus, and management’s outlook for the current quarter landed below where investors wanted it, even as August deliveries stayed strong. Retail sentiment sat near record lows heading into the print, and Nio stock was already well off its 52-week high of $8.02.
The setup for the past month tells the story cleanly. Nio’s volume growth is real, but the market has decided the pricing environment is worse than the delivery ramp implies, and it has repriced the shares to match.
Free Report, Just Released
Why Didn’t NIO Make The Top 10 List?
24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.
And NIO didn’t make the cut!
The report is free, and you can see why we think each stock is a top investment today.
Enter Your Email and See the Ten →
Earnings Miss Triggers the Slide
Nio delivered 107,658 vehicles in Q2 2026, up 49.4% year over year (YoY), with total revenue of RMB 32.1 billion, up 69.1% YoY. Management posted non-GAAP operating profit, positive free cash flow, and grew cash reserves to RMB 56.7 billion. Nio’s GAAP EPS of -$0.04 also beat the -$0.141 consensus, and the U.S. GAAP net loss for the first half narrowed sharply to RMB 860 million from RMB 11.74 billion a year earlier.
The problem was the top line coming up short of consensus and Q3 2026 guidance failing to reset expectations. August deliveries of 35,836 vehicles kept the volume story intact, and the third-generation ES8 has cleared 140,000 cumulative units, with the latest 10,000 built in 30 days. The soft outlook and revenue miss were enough for J.P. Morgan to downgrade Nio the following day and set a $4.50 target that the shares have since fallen through.
