NIO shares dropped 4.4% as a revenue miss and a sharp decline in European vehicle registrations overshadowed significant improvements in domestic vehicle margins and cost discipline.
Q2 revenue missed estimates, European registrations collapsed, and J.P. Morgan downgraded the stock, outweighing improved China margins.
NIO Inc. reported a 69% year-over-year revenue increase to 32.14 billion yuan, yet shares fell 4.4% after missing Wall Street's $4.95 billion consensus. While vehicle margins improved to 18.5% on strong domestic demand for flagship SUVs, the company faces a severe contraction in European registrations and a subsequent downgrade from J.P. Morgan.
Investors prioritized the revenue miss against analyst consensus and reacted negatively to J.P. Morgan's downgrade, which highlighted concerns over future delivery volumes and slowing demand in China.