Stock Market Today: NIO Jumps as Glimmers of Profitability Emerge
Nio (NIO) shares rose 3.1% to $6.58 following its Q2 earnings report, which revealed a smaller-than-expected loss of $567 million and a margin improvement to 10%. This performance indicates a potential turnaround for the EV maker, with a significant 26% increase in year-over-year deliveries. Heavy trading volume and positive trends in peer companies, Li Auto and BYD, reflect growing investor interest in the Chinese EV market. Analysts suggest NIO could achieve profitability by Q4 2025, despite broader market declines.
Nio (NIO 3.53%) climbed 3.1% on Tuesday to close at $6.58, rallying on the back of second-quarter earnings that demonstrated its strongest showing since Q4 2023. The EV maker posted a smaller-than-expected $567 million loss and improved its margin to 10%, suggesting a potential turnaround. Heavy trading volume of 119.6 million shares (nearly double its average) underscored heightened investor interest.
The broader markets dipped, with the S&P 500 (^GSPC -0.69%) sliding 0.7% and the Nasdaq Composite (^IXIC -0.82%) falling 0.8%.
NIO peers, Li Auto (LI 4.56%) and BYD Company (BYDDY 2.86%), also advanced on Tuesday. Li Auto rose 4.5% to $24.40, while BYD climbed 2.9% to $14.04, as both stocks benefited from continued excitement around Chinese EV demand.
The optimism stems from NIO's substantial 26% year-over-year jump in Q2 deliveries and a 55% rise in August units. Coupled with margin improvement and tighter cost controls, these gains suggest the company may reach profitability as early as Q4, positioning it as a standout in an otherwise challenging EV landscape.
Market data sourced from Google Finance and Yahoo! Finance on Tuesday, Sept. 2, 2025.
