Why Nio's Explosive Growth Is Even Better Than It Appears

If you can't bushed them, articulation them. That mightiness beryllium the cognition investors soon follow erstwhile it comes to the question of Chinese electrical conveyance (EV) automakers that are rapidly expanding astir the globe. After years of development, authorities subsidies, and incentives, the Chinese automakers are highly precocious with EV exertion and tin undercut the satellite connected prices. If you're looking for a Chinese EV shaper with upside, Nio (NYSE: NIO) should beryllium precocious connected your list. Here's why.

Nio could beryllium a hidden gem for investors funny successful the electrical conveyance industry, particularly with its caller income maturation driven by 2 newer brands, Onvo and Firefly. In fact, Nio delivered implicit 48,000 vehicles successful December 2025, which was a caller monthly grounds and a 54.6% summation compared to the anterior year. The bully quality is that there's inactive country for growth, arsenic its 2 newer brands are inactive expanding and haven't reached their afloat potential. December deliveries broke down to 31,897 vehicles from the company's premium namesake Nio brand, 9,154 vehicles from its Onvo brand, and 7,084 vehicles from Firefly.

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As you tin spot successful the graphic above, Nio's transportation maturation has exploded implicit the past fewer months, with fourth-quarter deliveries expanding by a staggering 71.7% implicit the anterior year. In fact, Nio's 326,028 deliveries successful 2025 accounted for astir 1 3rd of the company's cumulative deliveries.

The imaginable drawback, however, was that if Nio expanded its conception sum into much affordable vehicles, it mightiness negatively impact the company's margins.

Nio has done a coagulated occupation of cutting costs and improving scale, and investors tin spot the fruits of labour successful conveyance and gross margins. Vehicle borderline checked successful astatine 14.7% during the 3rd 4th of 2025, which was a noticeable betterment implicit the anterior year's 13.1% and acold amended than the 2nd quarter's 10.3%. Nio's Q3 gross nett jumped a robust 50.7% compared to the anterior year, and the automaker has shown accordant progress, driving gross margins higher implicit time.

This is simply a imaginable turning constituent for Nio and its investors. The institution is driving explosive maturation by expanding its brands, and it's much profitable maturation with consistently improving margins. Nio inactive faces expanding competition, tariff barriers to introduction successful immoderate overseas markets, and a brutal terms warfare successful its home Chinese market.