NIO (NYSE: NIO) is scheduled to release its quarterly earnings report before markets open on Tuesday, March 4th.

Wall Street analysts project the Chinese electric vehicle manufacturer will announce earnings of negative $0.42 per share alongside revenue of $20.19 billion for the quarter.

NIO, Inc. (NYSE:NIO) is scheduled to release its quarterly earnings report before markets open on Tuesday, March 4th.

What To Expect

According to the projections of Wall Street analysts, the Chinese electric vehicle manufacturer is expected to announce earnings of negative $0.42 per share on revenue of $20.19 billion for the quarter.

The company’s stock closed at $4.25 on Monday, down $0.38 for the day. This represents a substantial decline from its record high of $62.84 reached in February 2021.

Trading volume was notably elevated with 79.7 million shares changing hands. This exceeds the average daily volume of 51.7 million shares.

About NIO

NIO currently holds a market capitalization of $8.87 billion. The stock carries a price-to-earnings ratio of -2.81 and a beta of 1.68, indicating higher volatility than the broader market.

The company’s stock has demonstrated weak performance over recent periods. It holds a 200-day moving average price of $4.80 and a 50-day moving average of $4.36.

NIO’s 52-week trading range spans from a low of $3.61 to a high of $7.71. This price action highlights the stock’s continued downward trajectory since its 2021 peak.

The company maintains a debt-to-equity ratio of 0.98. Its liquidity measures include a quick ratio of 0.93 and a current ratio of 1.04.

Analyst Ratings And Price Targets

Wall Street analysts have grown increasingly bearish on NIO’s prospects. The consensus rating stands at “Hold” with an average price target of $5.38.

Several major financial institutions have downgraded their outlook on NIO in recent months. JPMorgan Chase reduced the stock from “overweight” to “neutral” and lowered its price target from $7.00 to $4.70 in February.

HSBC downgraded NIO twice, moving from “strong-buy” to “hold” in January and previously downgrading from “buy” to “hold” in November.

Goldman Sachs issued a “sell” rating in November and cut its price target from $4.80 to $3.90.

The current analyst breakdown shows two sell ratings, ten hold ratings, one buy rating, and one strong buy rating. This distribution reflects growing skepticism about NIO’s near-term prospects.

A Deeper Look

NIO is best known for its electric vehicles and unique battery-swapping technology, which allows drivers to exchange depleted batteries for fully charged ones at specialized stations rather than waiting for traditional charging.

The company’s product lineup includes electric sedans and SUVs, which it sells in China and Europe. However, higher tariffs on Chinese EVs present challenges to NIO’s international growth plans.

Vehicle deliveries have shown improvement after a period of deceleration. Following a slowdown to 34% growth in 2022 and 31% in 2023, deliveries accelerated to 39% growth in 2024, enabling the company to deliver 221,970 vehicles.

January 2025 saw further improvement with a 38% year-over-year increase in deliveries, suggesting that the company might be able to maintain its delivery momentum into the current year.

Vehicle margins have also stabilized after falling from 20.2% in 2021 to 9.5% in 2023. The metric improved sequentially through 2024, reaching 13.1% in the third quarter.

Management has indicated that they expect fourth-quarter vehicle margins to reach 15%, establishing this as the “baseline” margin for 2025. This outlook counters concerns about pricing pressure in China’s competitive EV market.

To boost growth, NIO is focusing on gaining market share in China through premium vehicle sales like the ET7 Executive Edition sedan and expanding into the mainstream segment with more affordable models.

The company is also expanding its product lineup with the Onvo smart vehicles and the new Firefly compact EV, which will launch in Europe during the first half of 2025. This model will compete with smaller vehicles from BMW’s Mini brand and the Smart joint venture between Mercedes-Benz and Geely.

Financial projections from analysts indicate revenue growth of 23% in 2024, 43% in 2025, and 24% in 2026. Despite these optimistic growth expectations, NIO currently trades at less than one times its projected 2025 sales.

In contrast, Tesla trades at eight times