NIO Stock: A High-Stakes Gamble Before Earnings Drop?
NIO's earnings report looms—bulls and bears are circling. Here's why this EV play could shock the market.
The Setup: NIO's stock has been a rollercoaster, and this earnings call could send it soaring or crashing. No pressure.
The Catalyst: Delivery numbers, margins, and that ever-elusive path to profitability. Will NIO finally silence the skeptics—or give them fresh ammo?
The Bottom Line: This isn't investing; it's betting with extra steps. But hey, at least it's more exciting than watching paint dry on a Tesla.
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October’s 40,397 deliveries – a monthly record – reinforce that view. It marked the third consecutive record-setting month and represented a 92.6% year-over-year growth.
However, the bear case also has no shortage of evidence. NIO’s share price has fallen far afield from its highs a few years back, and is down 86% over the past five years. The unprofitable company’s net losses have been growing over the past few years, and hit $3.1 billion for 2024.
Also worrisome is the company’s lack of success in the European market, where its total recorded sales have fallen to 833 year-to-date (compared to 2,365 in 2023 and 1,630 in 2024).
Investor John Bromels is taking a glass-half-full view, arguing that the company could still be on the road to riches, as he acknowledges that “there are some signs that Nio may in fact be starting to turn things around.”
Bromels notes that NIO’s net losses narrowed sequentially in both Q1 and Q2. He also highlights the company’s aim to post its first profitable quarter in Q4, suggesting that its financial trajectory – not just its sales – may be starting to improve.
Bromels also points out that early-stage losses are common in this capital-intensive industry; even Tesla did not achieve consistent profitability until the Model Y gained traction in 2020. The investor suggests that Nio may be on a similar path, with its Firefly and Onvo sub-brands potentially positioned to provide a meaningful lift in the coming years.
His enthusiasm isn’t unrestrained, however, and Bromels will be eagerly examining NIO’s Q3 earnings report to understand if the company’s recent progress is sustainable. That being said, he believes that purchasing NIO shares below $7 could pay off for those willing to roll the dice.
“It’s probably a worthwhile bet for a risk-tolerant investor looking to pick up shares in an EV growth stock,” sums up Bromels. (To watch Bromels’ track record, click here)
And what does Wall Street have to say about Nio in the week before its earnings call? The consensus is largely split. With 6 Buys, 6 Holds, and 1 Sell, the stock carries a Moderate Buy rating. The 12-month average price target sits at $6.90, implying ~12% upside from current levels. (See)
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