- Nio stock price jumped in the pre-market after the Chinese EV company released its earnings.
- The company turned a profit in the fourth quarter as its costs fell and growth continued.
- Nio has become one of the fastest-growing companies in the EV industry.
Nio stock price jumped by over 4% on Tuesday after the Chinese Tesla rival published strong financial results. It bounced to $5.20, up slightly from this month’s low of $4.40, with its market capitalization rising to over $12.2 billion.
Nio Stock Jumped After Strong Earnings
Nio, a top Chinese electric vehicle company, published strong financial results showing that its business continued to grow despite rising competition from firms like BYD, Xpeng, Li Auto, and Xiaomi.
Its results showed that vehicle deliveries continued to rise in the fourth quarter. It delivered 124,807 vehicles, up substantially from 72,690 in the fourth quarter of 2024.
Its key metrics on revenue, profitability, and margins continued growing. Its vehicle revenue rose by 80% to $4.5 billion, while its margin rose from 13.1% to 18.1%.
Including its other businesses, Nio’s business generated over $4.9 billion in revenue, up 79% YoY, while its gross margin rose to $868 million.
Most importantly, as the company had previously guided, it reported a net profit of $40.4 million, up from a loss of $103 million in the fourth quarter of 2024. This profit growth occurred as the company continued cutting costs and its revenue grew. The CEO said:
“These improvements were primarily driven by the strong delivery and revenue growth, an optimized product mix, and cost reduction and efficiency enhancement initiatives.”
Nio’s management believes the business will continue to grow this year despite ongoing competition in China. It expects to deliver between 80,000 and 83,000 vehicles this quarter, representing 90%-97% annual growth. In contrast, other top companies like BYD, Xpeng, and Li Auto are all seeing deteriorating sales.
READ MORE: Crypto Rally Today: Is This The Start of a New Market Bull Run?
Nio expects its revenue to grow to between $3.501 billion and $3.6 billion this quarter, representing an increase of between 103% and 109%. In contrast, Tesla’s revenue is expected to increase by 19% this quarter, while XPeng’s is expected to rise by 36%.
Nio believes its business will continue to grow this year due to its market share in China and other countries, including Europe and Canada. Canada recently reduced tariffs on Chinese vehicles, while the European Union is also making it easy for Chinese companies.
Nio Share Price Prediction: Technical Analysis
The daily timeframe chart shows that the Nio share price formed a double-bottom pattern at $4.38 and a neckline at $5.38, its highest swing on February 23. A double-bottom is one of the most common bullish reversal signs in technical analysis.
It is now approaching the 50% Fibonacci Retracement. Also, it has moved above the 50-day Exponential Moving Average (EMA), while the Supertrend indicator has now turned green.
Therefore, the Nio stock price will likely continue rising as bulls target the next key resistance level at $5.78, its highest level on December 30th. A move above that level will point to more gains, potentially to the 38.2% retracement level at $6.12.
READ MORE: Hyperliquid’s HYPE Price Jumps as Top Expert Sees a 330% Surge
