Nio (NIO) is an electric vehicle (EV) company. It produces and markets electronic vehicles, powertrains, and batteries. It also offers services to its customers such as lifetime free warranty, lifetime free roadside assistance, and lifetime free car connectivity. The company also has charging hubs and provides autonomous driving technology.

Nio shares are down 9% in the year to date and are down nearly 25% over the past 52 weeks. However, shares have recovered slightly and are up 30% from their year-to-date low. 

Nio Posts Disappointing Results

Nio posted its fourth-quarter 2024 results on March 21. The company reported a loss of $974.3 million. The EV company generated $2.69 billion in total revenue, marking a 15.2% increase from the same quarter last year but behind analysts’ estimates.

Nio posted stellar growth in its vehicle deliveries, which came to 72,689 units reflecting a 45% increase from last year. The increase can be attributed to the release of its sub-brand Onvo, targeting the mass market and securing the “top three position” in the Chinese battery-powered SUV market.

Nio’s vehicle margins increased to 13.1% in the quarter, compared to 11.9% posted in the same quarter last year. The gross margin also increased to 11.7% from 7.5% posted a year ago. As of Dec. 31, 2024, the company had a cash reserve of $5.7 billion.

For the first quarter, Nio guided for vehicle deliveries to come between 41,000 to 43,000, a 43% increase from the same quarter last year. Revenue is expected between $1.69 billion and $1.76 billion, a 29.8% rise. The company delivered 42,094 vehicles in Q1, just above the midpoint of its guidance. 

Citi Adds Nio to Catalyst Watch

Citi has added Nio to its 30-day positive catalyst watch with expectations of accelerated model rollouts, cost reductions, chip upgrades, and improved driver assistance. Citi analysts anticipate 63,000 vehicle deliveries from the EV maker in Q2, a 50% increase from the previous quarter. The number could increase to 150,000 by with around 100,000 to 120,000 deliveries in the third quarter. Citi analysts are calling for deliveries as high as 600,000 units for the full year 2026, up from their current forecast of 456,000.

Nio is expected to ramp up production of 10 new models this year, featuring its 5-series, 6-series, Onvo, and Firefly sub-brands. Citi anticipates vehicle gross margins to bounce back to 13% in the second quarter and further improve to 18%-20% by the fourth quarter.

Citi maintains a “Buy” rating on the stock, citing long-term efficiency improvement with growth potential while reiterating its $8.10 price target for U.S. shares which reflects upside potential of more than 100% from current prices. 

Analyst Takes on Nio Stock 

In general, analysts are cautious about the EV company, giving it a consensus “Hold” rating. The mean price target of $4.68, reflecting upside potential of 18%. 

The stock has been reviewed by 16 analysts and has received three “Strong Buy” ratings, two “Moderate Buy” ratings, nine “Hold” ratings, and two “Strong Sell” ratings.