TLDR

  • Nio shares reached a four-month peak, climbing nearly 6% on Friday with approximately 20% gains following Q4 results
  • HSBC raised rating to ‘Buy’ with $6.80 price objective; Nomura similarly upgraded to ‘Buy’ with $6.60 target
  • The Chinese EV maker achieved its maiden quarterly profit of 282.7 million yuan with revenue reaching $4.95 billion
  • Fourth quarter vehicle deliveries surged 72% compared to last year, totaling 124,807 units
  • Founder William Li secured equity-based compensation package linked to 40–50% yearly sales expansion objectives

The American depositary receipts of Nio advanced to a four-month peak on Friday, ending the session up nearly 6% at $5.86. Shares have appreciated close to 20% following the release of the company’s maiden profitable quarter.


NIO Stock Card
NIO Inc., NIO

Trading in Hong Kong saw Nio shares jump nearly 5% on Monday, extending recent gains.

The fourth quarter marked a pivotal moment. Nio delivered net profit of 282.7 million yuan — representing its inaugural quarterly profit — with revenue of 34.65 billion yuan ($4.95 billion), exceeding analyst projections of 33.25 billion yuan. Adjusted earnings per share registered at 0.29 yuan, significantly surpassing the 0.05 yuan consensus estimate.

Vehicle deliveries during Q4 totaled 124,807 units, marking a 72% increase compared to the same period last year. Vehicle margins expanded to 18.1%.

Across the full year, deliveries increased 47% to 326,028 vehicles, with annual revenue advancing 33.1% to 87.49 billion yuan.

Wall Street Upgrades Pile In

HSBC elevated NIO to ‘Buy’ from ‘Hold’ while increasing its price objective to $6.80 from $4.80, highlighting enhanced earnings clarity and greater confidence in Nio’s 2026 volume and profitability path. The bank noted that new models — including the ES8 — could drive delivery expansion and margin improvement.

Nomura issued its own upgrade to ‘Buy’ from ‘Neutral’, establishing a $6.60 target. The firm observed that Nio’s operational and financial performance have strengthened during the previous two quarters, with the company appearing to enter a more favorable cycle. Nomura continues to forecast approximately 25% compound annual growth in shipments from 2025 through 2028, despite moderating its near-term expectations.

Bank of America Securities increased its price target to $6.70 from $6.30 while maintaining a ‘Neutral’ rating. BofA highlighted Nio’s robust model pipeline and cost management, while noting challenges from reduced EV subsidies and cost inflation in 2026.

CEO Incentive Plan Tied to Growth Targets

Coinciding with earnings release, Nio’s board authorized an equity-based incentive program for CEO William Li, awarding him close to 249 million restricted stock units. The program establishes operational benchmarks requiring Nio to sustain annual sales growth of 40% to 50% throughout the next three to five years.

Q1 Guidance Above Consensus

For Q1, Nio projected 80,000 to 83,000 vehicle deliveries — indicating 90% to 97% growth versus the corresponding prior year period. Revenue guidance of 24.48 billion to 25.18 billion yuan similarly exceeded the 23.3 billion yuan consensus.

Nio’s cash holdings currently surpass $5 billion. The manufacturer operates more than 3,700 battery swap stations.

NIO shares broke above their 20-day moving average at $4.98 earlier this week, achieving this technical milestone for the first time in recent months.