Shares of China's burgeoning electric vehicle maker, Nio (NIO +1.61%), are up 16% this week after the company announced better-than-expected March vehicle delivery figures.
NYSE: NIO
Key Data Points
Nio delivered 35,486 vehicles in March -- a 136% increase from last year and a 71% increase over February. This delivery growth was well-balanced across Nio's three major brands:
- the company's premium Nio brand grew deliveries 120% year over year, and equaled roughly 60% of total deliveries in March
- its mid-tier Onvo label saw deliveries rise 43%
- Nio's newer, entry-level Firefly brand grew deliveries by 130% compared to February
For the first quarter of 2026, Nio's deliveries grew 96% year over year, exceeding the high end of management's expectations. What makes this stellar delivery growth even more intriguing is that it comes just three weeks after Nio reported Q4 earnings, during which the company achieved profitability for the first time in its history. With its premium Nio brand continuing to lead this delivery growth charge -- remaining the company's best-selling brand -- it's entirely possible that Nio's margins continue to improve.
Adding further excitement to the stock, the quickly growing EV maker opened its first "Nio House" outside of China, opening a store in Costa Rica. All three of its brands will be sold there, and the move represents Nio's first major foothold in the Americas as it continues to expand globally.
After growing sales by 76% in Q4 -- while reaching profitability -- it will be interesting to see what Nio's Q1 2026 results will be, given that its vehicle delivery growth accelerated in during the quarter. While I tend to avoid buying Chinese stocks due to regulatory and structural investment risks, Nio remains an intriguing growth stock, trading at just 1.2 times sales and poised to become increasingly profitable.
