NIO faced a pivotal earnings report on March 4, which showed profitability struggles and market pressures
NIO Inc., the troubled Chinese EV manufacturer, is scheduled to disclose Q4 2024 profits on March 4, 2025. As the firm suffers from continuous financial issues despite significant delivery growth, investors anticipate a major update that might influence NIO’s destiny in an increasingly competitive EV market dominated by Tesla and BYD.
Key Earnings Expectations and Market Response:
Wall Street analysts estimate NIO will post a net loss of ($0.42) per share, with revenue of about $2.19 billion. This estimate comes as NIO’s stock is under duress, trading at $4.29, a stunning 93% lower than its January 2021 high. NIO’s stock performance, which has fluctuated between $3.61 and $7.71 over the last 52 weeks, demonstrates rising investor mistrust. Heavy trading volumes on Tuesday underscored market uneasiness, with roughly 49.7 million shares changing hands—well above the average of 46.4 million. The company’s 200-day moving average is $4.78, adding to concerns about its sustained downturn.
Analyst downgrades signal caution:
- Several prominent financial organizations have updated their ratings on NIO in recent months:
- Macquarie lowered NIO from “outperform” to “neutral” in November, lowering its price target from $6.60 to $4.80.
- HSBC switched from “buy” to “hold” in early January.
- JPMorgan Chase downgraded its rating from “overweight” to “neutral” in February, lowering its target price from $7.00 to $4.70.
- Goldman Sachs adopted the most pessimistic attitude, downgrading NIO to “sell” in November with a target price of $3.90.
Delivery Growth vs. Profit
Despite its financial troubles, NIO has exhibited promising indicators in terms of car delivery. The firm supplied approximately 14,000 units in January 2025, representing a 38% increase over the previous year. This shows that NIO’s EV solutions are becoming increasingly popular in China’s congested market. However, profitability remains a serious challenge. In its most recent earnings report, NIO recorded a $721 million net loss on $2.6 billion in revenue, raising concerns about its capacity to achieve financial sustainability. With around $6 billion in cash reserves, experts believe NIO will need to raise additional money over the next two to three years, potentially diluting existing shareholders.
