Nio Stock Slides In Hong Kong As EV Maker Admits Flaws In Europe Expansion Plan Amid Sales Slump

• Executive vice president Mark Zhou said the company wrongly assumed its early success in Norway could be replicated across the wider EU.
• Zhou noted that some Nio vehicles were too large for European cities.
• Nio is preparing to launch the ES9 flagship SUV and Onvo’s L80 in the second quarter.

Shares of Nio, Inc. (NIO) fell over 2% in Hong Kong on Wednesday after a senior executive admitted to errors in the company’s European expansion plans, even as the EV maker accelerates product launches in China. 

U.S.-listed shares of Nio rose 0.2% to $5.30 on Tuesday but pared those gains, slipping 0.4% in extended trading. 

Nio Acknowledges Strategy Errors In Europe

Mark Zhou, Nio’s executive vice president, said on the ‘Leaders Unplugged’ podcast, hosted by David Bach, President of IMD Business School, that the company incorrectly assumed that early success in Norway could be replicated across the wider European Union.

“We started with Norway because Norway is one of the best locations for the electric vehicle industry,” Zhou said. “With that kind of success, we thought Norway was the same as the European Union, which turned out to be totally different.”

Zhou said Nio underestimated differences in consumers, governments and regulations, and acknowledged that some of its vehicles were poorly suited to European cities. “A lot of our vehicles are big because they’re more tailored to the Chinese environment,” he said, adding that European teams warned the cars were difficult to maneuver in narrow urban areas.

Norway has highlighted the challenges, with Nio missing its 2025 delivery target by about 65%. Across Europe, registrations remain minimal, including just 56 vehicles in January and a single registration in Germany, despite multiple flagship showrooms.

Zhou also said infrastructure costs and slower regulatory processes hurt the rollout. “We didn’t anticipate the speed and we didn’t anticipate the total cost of setting it up,” he said, citing Europe’s stricter rules, including GDPR compliance. Firefly, Nio’s compact sub-brand developed in Munich, has seen limited European traction and has since been redirected to China, where it now sells about 6,000 units per month.

Despite the setbacks, Zhou said Europe remains important in the long term, adding that the company needs “better ways of serving our users in Europe.”

New SUV Launches In Focus

Nio is also ramping up its product pipeline in China, planning to unveil its new flagship ES9 SUV around April 10, with pricing expected in late May and deliveries starting June 1, CnEVPost reported, citing comments by co-founder Qin Lihong at a recent user event.

The ES9 is positioned as an SUV adaptation of the ET9 sedan’s technology suite, including the SkyRide chassis system, and is aimed at competing with high-end luxury SUVs. Qin said internal discussions are ongoing over whether all ES9 variants should carry the SkyRide system to allow for a wider pricing range.

Meanwhile, sub-brand Onvo is set to release full details of its L80 model in late April, followed by pricing and deliveries in mid-May. Qin said the company plans to build inventory ahead of launch to support stronger early delivery momentum.

China Momentum Offsets Overseas Weakness

While Europe struggles, Nio reported record battery-swap activity during China’s Lunar New Year travel period. The company logged 177,627 battery swaps in a single day during the Spring Festival holiday, marking a new all-time high. In February, multiple consecutive daily swap records were set.

Nio now operates 3,750 battery swap stations across China, including 1,022 along expressways connecting 550 cities. The company surpassed 100 million cumulative battery swaps earlier this month and plans to add 1,000 additional stations in 2026.

Record Deliveries And Profit Turnaround

In the fourth quarter (Q4) of 2025, Nio delivered a record 124,807 vehicles across its Nio, Onvo and Firefly brands, up about 72% year over year. January deliveries rose 96.1% from a year earlier, though they declined sequentially from December.

The company has forecast its first-ever adjusted operating profit for Q4, projecting 700 million to 1.2 billion yuan, compared with an adjusted operating loss of 5.54 billion yuan a year earlier. The company attributed the expected turnaround to higher volumes, improved vehicle margins and cost controls.

However, Nio cautioned that the first quarter of 2026 may be softer as government stimulus measures, including purchase tax incentives, begin to phase out.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for Nio was ‘bullish’ amid ‘high’ message volume.

One user said, “First is the pain, then comes stability.. then momentum!  We reached stability and next month after earnings comes the momentum.”

 Another user said, “No question this will run to $7-$8 again before ER but can it hold it this time.”

U.S.-listed shares of Nio have risen 4% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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