Nio(NYSE:NIO), China-based designer and seller of electric vehicles, closed Tuesday at $5.7, up 15.38%. The stock moved higher after earnings showed Nio’s first-ever quarterly net profit and a strong beat on fiscal Q4 2025 (period ended Dec. 31, 2025) revenue and EPS. Investors will now be watching whether record deliveries can sustain improved margins.
Trading volume reached 145.1 million shares, coming in about 233% above its three-month average of 43.6 million shares. Nio IPO'd in 2018 and has fallen 14% since going public.
How the markets moved today
S&P 500(SNPINDEX:^GSPC) slipped 0.22% to 6,781, while the Nasdaq Composite(NASDAQINDEX:^IXIC) was roughly flat, adding 0.01% to finish at 22,697. In electric vehicle manufacturing, industry peers Tesla(NASDAQ:TSLA) closed at $399.24 (+0.14%) and BYDDY(OTC:BYDDY) ended at $12.28 (-1.84%), highlighting Nio’s outsized move.
What this means for investors
Nio reported its first quarterly net profit about a month after teasing investors that it would have a positive adjusted operating profit in Q4. The EV maker beat that forecast, but the company surprised investors again by reporting a small, unadjusted net profit, too.
Additionally, Nio provided optimistic estimates for Q1 sales and vehicle deliveries. The company expects to approximately double last year’s results on both metrics.
Investors see the report as a possible inflection point for the company. The potential for sustained profitability is now visible. That bodes well for Nio’s stock price in the short- and potentially long-term.
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Howard Smith has positions in BYD Company, Nio, and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.
