NIO shares fall after JPMorgan downgrade despite strong second-quarter growth

  • NIO posted second-quarter revenue of RMB32.14 billion, up 69.1% year over year, with vehicle gross margin of 18.5%.
  • The company delivered 107,658 vehicles in the quarter and 262,893 through August, while guiding for 108,000 to 111,000 third-quarter deliveries.
  • JPMorgan cut NIO to Neutral and lowered its price target to $4.50 from $7.00 as weaker guidance, competition and rising costs pressured shares.

NIO reported second-quarter 2026 revenue of RMB32.14 billion ($4.74 billion), up 69.1% year over year and 25.9% sequentially, as deliveries increased 49.4% to 107,658 vehicles. Vehicle gross margin was 18.5%, adjusted net profit reached RMB26.1 million ($3.9 million), and the company generated positive free cash flow, although its GAAP net loss widened sequentially to RMB528 million ($78.7 million). NIO guided for third-quarter revenue of RMB33.285 billion to RMB34.051 billion, approximately $4.9 billion to $5.1 billion depending on the cited conversion, and deliveries of 108,000 to 111,000 vehicles, below analyst benchmarks cited at approximately $5.1 billion to $5.3 billion. JPMorgan downgraded NIO from Buy, or Overweight in an earlier assessment, to Neutral and cut its price target from $7.00 to $4.50, while Freedom Broker downgraded the stock to Hold and cut its target to $4.00. NIO is targeting monthly deliveries above 40,000 and quarterly deliveries above 120,000 in the fourth quarter to restore positive cash flow.

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