Chinese electric vehicle maker NIO Inc (NYSE:NIO) stock gained on Thursday after the company reported strong fiscal first-quarter results, driven by higher vehicle deliveries, expanding margins, and improving profitability.
Revenue And Earnings Beat Expectations
The company reported quarterly revenue of 25.53 billion Chinese yuan ($3.701 billion), up 112.2% year over year (Y/Y). The revenue declined 26.3% sequentially. The figure exceeded the analyst consensus estimate of $3.550 billion.
Excluding one-time items, adjusted earnings came in at 0.02 yuan per ADS. That result improved significantly from a loss of 3.01 yuan per ADS a year earlier.
Vehicle deliveries reached 83,465 units in the quarter, rising 98.3% Y/Y. The quarterly deliveries declined 33.1% from the prior quarter.
Vehicle revenue increased 129.2% Y/Y, mainly due to higher delivery volume and a higher average selling price, driven by a favorable product mix. The quarterly revenue declined 27.9% sequentially, mainly attributable to a decrease in delivery volume.
Competitive Position And Delivery Momentum
NIO, often referred to as the “Tesla of China,” remains a major competitor to Tesla, Inc. (NASDAQ:TSLA).
For comparison, Tesla delivered a record 358,023 vehicles globally in the first quarter.
NIO delivered 29,356 vehicles in April 2026. As of April 30, 2026, the company had delivered 112,821 vehicles, bringing cumulative deliveries to 1,110,413.
Margin Expansion And Balance Sheet Strength
Profitability improved during the quarter as margins expanded.
Gross margin rose to 19.0%, up from 7.6% a year earlier, mainly attributable to the increased vehicle margin. The margin grew from 17.5% in the previous quarter, mainly due to an improvement in the gross loss rate from the provision of power solutions and an increase in sales from parts, accessories, and after-sales vehicle services, with relatively higher margins.
Vehicle margin reached 18.8%, compared with 10.2% in the prior year and 18.1% in the previous quarter.
As of March 31, 2026, the company held 48.2 billion yuan ($7.0 billion) in cash and cash equivalents, restricted cash, short-term investments, and long-term time deposits.
Executive Commentary
NIO founder, chairman, and CEO William Bin Li said the automaker has entered an intensive product launch and delivery cycle starting in the second quarter.
Li said NIO’s long-term investments over the past 11 years helped the company build “comprehensive systematic innovation capabilities” that support new product launches and strengthen competitiveness.
He highlighted that the all-new ES8 ranked first in China’s large SUV segment and among SUVs priced above RMB 400,000 for five straight months.
Li also said the ES9 flagship executive SUV combines multiple industry-first technologies and aims to lead the premium executive SUV segment into the battery-electric era.
Li said ONVO’s upcoming models will receive major smart-technology upgrades powered by NIO’s self-developed smart driving chip, NIO WorldModel, and full-domain operating system.
He added that the newly launched ONVO L80 flagship SUV targets broader consumer demand through its space-focused and lifestyle-oriented design. At the same time, FIREFLY plans to introduce additional special-edition models to strengthen customer engagement.
CFO Stanley Yu Qu said NIO continued to improve profitability and efficiency in the first quarter, with vehicle margins rising to 18.8% for a fourth straight quarter of sequential gains and other sales margins hitting a four-year high of 20.6%.
He added that the company maintained positive non-GAAP operating profit and increased cash reserves as it focuses on further cost controls and sustainable growth.
Outlook Signals Continued Growth
For the second quarter of 2026, NIO expects vehicle deliveries between 110,000 and 115,000 units. That would represent growth of about 52.7% to 59.6% compared with the same period in 2025.
The company forecasts quarterly revenue between 32.78 billion yuan ($4.75 billion) and 34.44 billion yuan ($4.99 billion). The guidance implies Y/Y growth of about 72.4% to 81.2% and exceeds the $4.550 billion analyst consensus estimate.
NIO Price Action: NIO shares were up 4.83% at $5.860 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by Robert Way via Shutterstock
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