Nio (NIO 8.24%) 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 -0.13%) sliding 0.7% and the Nasdaq Composite (^IXIC -0.07%) falling 0.8%.
NIO peers, Li Auto (LI -0.23%) and BYD Company (BYDDY 2.30%), 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.
