In August, Chinese EV maker NIO Inc. delivered a record 31,305 vehicles, up 55.2% year-over-year, just days before its Q2 earnings report on September 2, as competition in the EV Chinese luxury cars market intensifies.
Is NIO a good investment?
The Chinese electric vehicle stocks milestone reinforces optimism over NIO’s growth, though it fell slightly short of Deutsche Bank’s projection of 32,000 units. The surge was driven by new sub-brands Onvo and Firefly, alongside pre-sales of the revamped ES8, which will officially launch at NIO Day later this month.
NIO Stock Prediction 2025
Wall Street expects NIO to post Q2 revenue of $2.73 billion, up from last year’s $2.4 billion. It will be all about the Chinese car stocks margins and trend in demand.
TipRanks puts the Nio electric car price range and stock’s consensus rating at Moderate Buy with four Buy recommendations, five Hold recommendations, and one Sell recommendation in the past three months. The best Chinese luxury SUV average price target of $5.01, however, reflects a downside of 21.5% from here.
Despite investor caution, August figures reinforced strong momentum. One of the best Chinese EV cars NIO delivered 72,056 vehicles in Q2, up 26% year-over-year and 71% from Q1.
The Onvo L90 alone achieved 10,575 deliveries in its debut month, creating a Nio investor relationship fastest-selling model to cross the 10,000-unit mark.
“Investors will look for Q3 guidance, which will give a strong indication of September deliveries,” market watchers noted.
NIO vs BYD
While NIO celebrated Chinese luxury cars record sales, rivals posted mixed results. XPeng delivered 37,709 vehicles in August, up 169% year-on-year, though short of expectations. Xiaomi surpassed 30,000 for a second month, positioning itself as a direct Tesla challenger with its SU7 sedan outselling the Model 3.
BYD, still one of the world’s largest Chinese luxury cars, sold 373,626 vehicles in August, up just 0.15% year-on-year despite strong overseas momentum. Notably, its net income plunged 30% in Q2, the first such drop since 2022. Analysts point to fierce domestic competition and waning demand for plug-in hybrids, even as BEV sales rise.
In contrast, Tesla does not disclose monthly compared to the Chinese luxury cars like Nio sales, but industry data points to another decline, leaving local players to capture market share.
“XPeng and Xiaomi continue to have momentum in the fierce China EV market, while Nio suddenly has it amid a newly launched model,” analysts observed.
As NIO premium electric heads into earnings season, its ability to sustain delivery momentum while managing competition from BYD and Tesla will shape investor confidence. With smart Chinese EV demand shifting rapidly, the battle for dominance is far from settled.
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