NIO Reports Q2 Earnings Miss, Revenue Rises Amid Competition

NIO's Q2 net loss widened to $720.8m, with revenue rising 8.9% to $19.01bn, missing analyst expectations. The company's gross margin improved to 10.0%, while vehicle margin fell to 10.3% due to product-mix changes. NIO posted record monthly sales in August, with deliveries jumping 55% to 31,305 units. The EV maker guided Q3 deliveries of 87,000-91,000 units and revenue of $21.81bn-$22.88bn, forecasting growth of 16.8%-22.5% YoY.

NIO Inc. (NYSE: NIO) reported its Q2 2025 financial results, with a net loss of $720.8 million, a 1% year-over-year increase. Revenue rose 8.9% to $19.01 billion, slightly missing analyst expectations [1]. The company's gross margin improved to 10.0%, while vehicle margin fell to 10.3% due to product-mix changes [2]. Notably, NIO posted record monthly sales in August, with deliveries jumping 55% to 31,305 units [3]. The EV maker guided Q3 deliveries of 87,000-91,000 units and revenue of $21.81 billion-$22.88 billion, forecasting growth of 16.8%-22.5% year-over-year.

NIO's Q2 results indicate a mixed bag of performance. While the company delivered a record 72,056 vehicles, a 25.6% year-over-year increase, its net loss widened due to higher operating expenses and a decrease in vehicle margins. The decline in vehicle margins was primarily attributed to changes in the product mix, including the launch of the ONVO L90 SUV and the redesigned NIO ES8 [3]. These new models, while well-received, have contributed to a lower average selling price, impacting overall margins.

Despite the challenges, NIO's delivery numbers continue to impress. The company delivered 10,525 vehicles from the NIO brand, 16,434 from the ONVO brand, and 4,346 from the FIREFLY brand in August, demonstrating its ability to cater to a diverse range of customer preferences [3]. The strong market reception of the ONVO L90 and the redesigned NIO ES8 has driven this growth.

Looking ahead, NIO expects Q3 deliveries between 87,000-91,000 units, representing a 40.7% to 47.1% year-over-year growth. The company's strategic investment in NIO China, increasing its stake to 91.8% through an additional RMB20 billion investment, also positions it for future growth [3]. However, achieving profitability remains a key challenge, with the company's founder and CEO William Li emphasizing the importance of profitability in the fourth quarter.

References
[1] https://www.ainvest.com/news/nio-achieves-record-high-monthly-deliveries-august-2025-delivering-31-305-vehicles-2509/
[2] https://eletric-vehicles.com/nio/nio-reports-lower-vehicle-margin-in-q2-with-slightly-improved-net-loss/
[3] https://www.stocktitan.net/news/NIO/nio-inc-reports-unaudited-second-quarter-2025-financial-fg8zjhfb39rm.html