NIO's Loss Narrows on EV Sales Growth

By Jiahui Huang

Chinese electric-vehicle maker NIO reported a narrower loss in the second quarter, thanks to robust deliveries and its premium positioning, though the sequential decline in monthly sales weighed on shares.

Its net loss came to 721.6 million yuan, equivalent to about $107 million, narrowing from 5.14 billion yuan a year earlier, as revenue climbed 69% to 32.14 billion yuan. NIO delivered nearly 50% more vehicles during the quarter, even though sales volume fell short of guidance.

Both its top and bottom lines missed market expectations. Analysts had expected a 558.4 million yuan loss for the second quarter on revenue of 33.71 billion yuan, according to a Visible Alpha-compiled consensus.

NIO shares earlier ended 6.4% lower in Hong Kong, after the EV maker logged a 0.3% drop in sales last month from July, the second straight month of declines. The company's new flagship ES9 sport-utility vehicle has enjoyed strong sales, but that hasn't satisfied investors, who are watching to see if it can maintain business momentum and turn it into sustainable profitability in an overcrowded market.

The Shanghai-based company on Tuesday said its second-quarter gross margin was 18.4%, while its vehicle margin reached 18.5%, thanks to a better product mix.

NIO guided for third-quarter revenue of between 33.29 billion yuan and 34.05 billion yuan, an increase of 53% to 56% from a year earlier. It expects to deliver 108,000 to 111,000 vehicles during the period, 24%-27.5% more than the previous year.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

September 01, 2026 06:39 ET (10:39 GMT)