Latest Developments in Nio Stock: What Investors Should Know

Nio Reports Mixed February Deliveries Amidst Competitive EV Market

Chinese luxury electric vehicle maker Nio Stock (NYSE:NIO) reported deliveries of 13,863 vehicles in February. This figure represents a significant 62% increase from the same period last year; however, it also marks a slight decline of about 5% compared to January. For context, Li Auto (NASDAQ:LI), one of the leading players in China’s emerging EV market, delivered 26,263 vehicles in February, increasing nearly 30% year-over-year. Similarly, Xpeng (NYSE:XPEV) reported 30,453 vehicles sold in February, showcasing a substantial growth of over 6.5 times from 4,545 units in the same month last year. Historically, the early months of the year tend to be slow for the Chinese automotive market due to the Chinese New Year festival, which typically falls between late January and mid-February. To gain a clearer view of performance, it’s useful to combine January and February deliveries for a better year-over-year comparison. In this context, Nio’s total vehicle sales for the two months reached 27,055 units, a notable increase of about 49% from 18,187 units during the same period last year.

Nio’s flagship brand accounted for 9,143 vehicle deliveries in February, representing a 12.4% rise from 8,132 units in February of the previous year and a month-over-month increase of 15%. Much of this growth can be attributed to the Onvo subbrand, established in the latter part of last year. Deliveries for Onvo dipped to 4,049 vehicles compared to January. Nio has focused Onvo on addressing larger market segments and catering to specific consumer needs. The first vehicle from this subbrand, the Onvo L60, is priced between RMB 200,000 ($28,000) and RMB 300,000 ($42,000) and is positioned as a competitor to the Tesla Model Y. Despite a noted drop in Onvo sales, supply is not expected to be an issue. Nio previously indicated plans to increase production of the L60 from 10,000 units in December to 20,000 by March 2025. Additionally, anticipation builds for Onvo’s L90, a large SUV featuring three rows of seating, expected to be unveiled in Q2 and available for purchase in Q3 2025. Furthermore, Nio announced a new brand, Firefly, targeting the high-end compact car market to compete against models like BMW’s Mini and the Mercedes Smart series. The Firefly’s pre-sales have commenced, starting at 148,800 yuan (approximately $20,500). Although luxury compact EVs represent a niche market in China, the demand for smaller EVs in urban areas presents significant growth opportunities as the market continues to develop. Firefly may also enhance Nio’s competitive position in Europe, where compact cars dominate.

Nio has faced challenges in growth over recent years. In contrast, the Trefis High Quality Portfolio, which includes a selection of 30 stocks, has delivered superior returns with lower risk than the S&P 500 index over the past four years, as evident in HQ Portfolio performance metrics. Given the current geopolitical uncertainties and economic environment surrounding interest rate cuts, questions arise about Nio’s potential to underperform the S&P over the next 12 months, similar to trends observed in the previous few years—though renewal and recovery remain possible.

Nio’s current valuation appears attractive, with the Stock trading around $4.50 per share, or roughly 0.7 times projected 2025 revenues. This valuation seems low, considering consensus estimates project revenue growth exceeding 40% in 2025. In comparison, Tesla trades at around 9 times its revenue despite projected growth of only about 15% according to estimates. For a thorough comparative analysis, refer to Nio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare?

Returns	Mar 2025 MTD [1]	2025 YTD [1]	2017-25 Total [2]
NIO Return	0%	6%	-27%
S&P 500 Return	0%	0%	162%
Trefis Reinforced Value Portfolio	0%	-3%	666%