NIO (NIO) Stock Plunges to 52-Week Low Despite Rising Deliveries

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Shares of NIO plummeted to a 52-week low of $3.48 during Tuesday’s session before closing around $3.40, marking a roughly 6% decline.
The Chinese EV maker announced that Geely will acquire a 30% ownership position in NIO Power, its battery-swapping division, for approximately RMB640 million ($95 million) in cash and assets.
The transaction places NIO Power’s valuation at around RMB16 billion ($2.4 billion), while NIO China retains majority control with a 63.6% stake.
Vehicle deliveries in August increased 14.5% compared to the previous year, reaching 35,836 units, while Q2 revenue surged 69.1% to RMB32.1 billion.
Analyst sentiment is mixed, with 15 analysts giving an average “Hold” recommendation and setting a consensus price target of $5.87.

NIO stock plummeted to a fresh annual low of $3.48 on Tuesday before recovering slightly to close near $3.40, representing approximately a 6% decline for the session. The shares had finished the previous day at $3.59. Volume was elevated, with around 4.9 million shares traded.

NIO Inc., NIO

The sharp decline followed Monday’s announcement of a strategic collaboration with fellow Chinese automotive manufacturer Geely. The agreement grants Geely a 30% equity position in NIO Power, the electric vehicle maker’s battery-swapping and charging infrastructure division.

The transaction structure includes approximately RMB640 million ($95 million) in cash from Geely, plus the transfer of Geely’s charging operations, Yiyi Power, into the joint venture. Based on this deal, NIO Power carries an estimated valuation of RMB16 billion, equivalent to roughly $2.4 billion.

Following completion of the transaction, NIO China will maintain majority ownership with a 63.6% stake in the division. The agreement includes provisions that could adjust Geely’s position to as high as 34% based on performance metrics, though it might decrease to 20% if targets aren’t met.

Chief Executive William Li positioned the arrangement as an efficiency initiative designed to eliminate redundant infrastructure investments. He advocated for broader industry cooperation, urging other Chinese vehicle manufacturers to collaborate on charging and battery-swapping facilities instead of developing parallel systems.

Vehicle Deliveries Show Strength

While the stock experienced downward pressure, NIO’s operational performance demonstrated positive momentum. August vehicle deliveries totaled 35,836 units, representing a 14.5% year-over-year increase.

These deliveries spanned the company’s three-brand portfolio. The flagship NIO brand contributed 21,174 vehicles, more than double the prior year’s figure. ONVO accounted for 8,810 deliveries, while Firefly added 5,852 units, up 34.7% year-over-year.

Through the first eight months of 2026, total deliveries reached 262,893 vehicles. This represents a substantial 57.9% gain versus the corresponding period in 2025.

Q2 Financial Performance Shows Improvement

The company’s second-quarter financial results, published on September 1, revealed revenue growth of 69.1% year-over-year, reaching RMB32.1 billion (approximately $4.74 billion). Vehicle margins remained stable at 18.5% despite headwinds from increased raw material and semiconductor expenses.

NIO reported an adjusted net profit of RMB26.1 million, marking its third consecutive quarter of profitability on an adjusted basis. However, the adjusted per-share loss of 27 cents fell short of analyst expectations for a 21-cent loss.

Company leadership highlighted the ES8 SUV’s performance, noting it’s approaching 150,000 total deliveries this month. NIO provided third-quarter guidance of 108,000 to 111,000 vehicle deliveries and set an objective of exceeding 40,000 monthly deliveries on average during Q4.

Wall Street analysts remain split on the stock’s prospects. According to MarketBeat data, six analysts rate it a Buy, seven maintain Hold ratings, and two recommend Sell, resulting in a consensus Hold rating with a $5.87 price objective.

Recent analyst actions have been varied. Goldman Sachs maintained its Buy recommendation with a $6.10 target on September 4, while Citigroup reaffirmed its Buy stance on September 1.

Conversely, Freedom Broker downgraded NIO from Strong Buy to Hold on September 2, and RBC reduced its rating to Sector Perform the next day. Weiss Ratings has maintained a Sell recommendation since late July.

The stock currently trades beneath both its 50-day moving average of $4.24 and its 200-day moving average of $5.16. NIO’s market capitalization sits at $8.47 billion, with a debt-to-equity ratio of 2.11 and a current ratio of 1.02.

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