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Shares of NIO Inc. (NIO) surged 10% in pre-market trading on Thursday after the company announced it expects to post its first-ever adjusted operating profit for the fourth quarter.
Based on preliminary unaudited figures, the company expects adjusted profit from operations in the range of RMB700 million to RMB1.2 billion ($100 million to $172 million). This compares with an adjusted operating loss of RMB5.54 billion in the previous corresponding period. Nio also expects GAAP operating profit to range between RMB200 million and RMB700 million for Q4.
The anticipated turnaround was driven by steady growth in vehicle sales, improved margins supported by a favorable product mix, and ongoing cost-cutting initiatives, Nio said.
In Q3, Nio reported a 17% increase in total revenue to RMB21.79 billion but missed analyst estimates. The company has posted significant gains in vehicle sales lately.
Nio delivered 27,182 vehicles in January 2026, marking a strong 96.1% increase from a year earlier. However, deliveries fell 43.5% from December, dampening investor sentiment.
Of the total, 20,894 were Nio-branded vehicles, 3,481 came from the Onvo sub-brand, and 2,807 were from the Firefly lineup. Cumulative sales climbed to 1.02 million vehicles, crossing the one-million milestone
Retail sentiment on Stocktwits turned ‘bullish’ from ’neutral’ a session earlier, amid ‘high’ message volumes.
One user stated that while profitability is good news, shares are being suppressed by a macroeconomic correction.
Another user saw strong gains if Nio guided for full year profitability.
Year-to-date, NIO shares have declined around 9%.
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