Shares of Nio Inc. (NIO) jumped over 3% in pre-market trading on Tuesday after the company reported stronger-than-expected Q3 results, highlighted by a surge in vehicle deliveries and a narrower net loss. Nio delivered 87,071 vehicles in the third quarter, up 40.8% year over year and 20.8% from the previous quarter. Meanwhile, the EV maker reported a Q3 loss of ¥1.14 per share, coming in better than the estimated ¥1.59 loss.
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More Details from Nio’s Q3 Performance
In Q3, Nio’s revenue came in at ¥21.79 billion, slightly below the consensus estimate of ¥22.3 billion. Meanwhile, vehicle sales totaled ¥19.20 billion, up 15% year over year and 19% from the prior quarter.
Overall, Nio’s vehicle sales revenue has been volatile, dipping in early 2023 before rebounding in late 2023 and throughout 2024. The improving performance signals that Nio may be regaining momentum in the competitive EV market, easing investor concerns after several quarters of volatility. Below is a screenshot showing Nio’s revenue growth over the last few quarters.
The company’s management credited the strong sales momentum to the growing market appeal of its NIO, ONVO, and FIREFLY brand lineups, which continue to gain traction across multiple customer segments.
Nio’s Q4 Outlook
For the fourth quarter, Nio expects strong growth ahead. It expects Q4 deliveries between 120,000 and 125,000 vehicles, an increase of 65.1% to 72.0% year over year.
The company also forecasts total revenue in the range of ¥32.76 billion to ¥34.04 billion, representing 66.3% to 72.8% revenue growth compared to the same quarter last year.
Is NIO a Good Stock to Buy?
According to TipRanks, NIO stock has a Moderate Buy consensus rating based on six Buys, six Holds, an one Sell assigned in the last three months. At $6.90, Nio’s share price target implies a growth rate of 20% on the current trading level.
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