Chinese electric vehicle maker NIO Inc (NYSE:NIO) reported a narrower third-quarter loss as deliveries surged and gross margins hit their highest level in three years, though revenue slightly lagged analyst expectations.
For the quarter ended September 30, NIO posted an adjusted loss per share of $0.15 and revenue of $3.06 billion, up 16.7% year-on-year but short of consensus estimates of $3.14 billion. The company’s net loss narrowed 31.2% to $488.9 million.
Gross margin improved to 13.9%, boosted by a higher-margin vehicle mix and cost optimization efforts.
NIO delivered 87,071 vehicles in Q3, a 40.8% rise from a year earlier and a 20.8% sequential increase. The growth reflects traction from NIO’s multi-brand strategy, including its flagship NIO brand, the value-oriented ONVO, and the Firefly brand.
The company’s vehicle margin climbed to 14.7%, compared with 13.1% a year ago, while gross profit rose 50.7% to roughly $423 million. R&D spending fell 28% year-on-year, and SG&A costs remained largely flat.
Looking ahead, NIO expects fourth-quarter deliveries of 120,000 to 125,000 vehicles. The company aims for non-GAAP profitability in 2026, targeting a vehicle gross margin of around 20%.
Key product initiatives include launching two new models in the first half of 2026, a third model in Q3, and expanding the ONVO brand into China’s high-volume 100,000 to 300,000 RMB price segment. The Firefly brand will also see a global rollout leveraging NIO’s international partnerships across Europe, Asia, the Middle East, and the Americas.
Shares of NIO were down 3.7% in early trading on Tuesday.