u/AI-is-4-StupidPeople

Being profitable in the slowest quarter of the year is unbelievable. Expensive main NIO brand cars are now the bigger portion of sales, solidly securing NIO’s leadership position in luxury EV segment.

Gigantic profit margin improvement YoY in the slow Q1 and even increasing from Q4 which had the highest volume of sales to date !

Revenue up 112 % YoY!! This is insane , not 30%, not 50%, MORE THAN DOUBLE at a time when EV sales are DOWN overall in China!

“Adjusted earnings per share came in at RMB0.02, outperforming analyst expectations for a loss of RMB0.34 per share.

Gross margin improved significantly to 19.0%, compared with 7.6% a year earlier and 17.5% in the fourth quarter of 2025, supported by improved operational efficiency and a stronger product mix.

For the second quarter, NIO forecast revenue of between RMB32.78 billion and RMB34.44 billion, ahead of analyst expectations of RMB31.83 billion.”

The street expectations is 0.24/share loss. Q1 always being the lowest sales of the year, profit is not expected , hence the low street expectations.

However given 98% increase in sales in Q1 YoY and the cost cutting/much reduced R&D, NIO will may shock the markets by over 100 % beat in expectations (my gut feeling around 0.10-0.12 per share loss)

And next 3 Quarters certainly to be profitable , with all new launches (L80, ES9 plus upgraded existing models) kicking in Q2.

Several China EV sales stats published today !

NIO in top 10 EV Makers in April , top 8 year to date

ES 8 top selling large SUV, 5 months in a row

But many probably missed the real stats which is more significant;

1. for TOP SELLERS such as BYD , Geely, TSLA , sales are down YoY… Xpeng also down YoY for the first 4 months

2. other luxury brand EV’s such as LI auto , Huawei’s HIMA alliance , XIOMI are almost stagnant

3. the top sellers are not BEV only ; they sell hybrids as well. China’s EV sales hit 61 % of all cars sales in April and the largest increase in sales are in pure battery EV’s..

4. NIO sales increase is mostly in the expensive high margin NIO main brand

Bottom line ; pure BEV is the future and in luxury segment NIO rules and soon to be the top seller

NIO’s sales by quarter in the last 2 years have continuously increased both QoQ (seasonality) and YoY (increase sales , performance. As clearly seen below, this is the trend.

NIO Quarterly Vehicle Deliveries (2024–2025)

Q1: 30,053 (2024) → 42,094 (2025)

Q2: 57,373 (2024) → 72,056 (2025)

Q3: 61,855 (2024) → 87,071 (2025)

Q4: 72,689 (2024) → 124,807 (2025)

NIO had reported already 98% jump in deliveries in Q1/26 compared to 2025. (From 42 K to 83 K) . So I expect significantly reduced loss from a year earlier (Q1 having the lowest sales volume in the year for all car manufacturers). Q2, Q3, Q4 will be profitable making 2026 the first profitable full year!

Exciting days ahead …