Nio Shares Plunge Amid Record Vehicle Deliveries

The market has delivered a harsh verdict on Nio's latest operational update. Despite the Chinese electric vehicle maker reporting its strongest monthly delivery figures to date in November 2025, its stock price has collapsed, highlighting a deepening investor skepticism that extends beyond top-line growth.

In November, Nio achieved a historic milestone, delivering 36,275 vehicles. This represents a staggering year-over-year increase of 76.3%. The company's multi-brand strategy appears to be gaining traction, with its more affordable sub-brands, ONVO and FIREFLY, contributing significantly to this volume surge.

Yet, the financial markets reacted with a brutal sell-off. The stock, currently trading around €4.29, has plummeted by more than 33% in the past month alone. This severe decline epitomizes a "sell the news" event, where positive operational data triggers a wave of selling as underlying financial concerns take precedence.

The Core Issue: Persistent Unprofitability

Analysts point to the company's ongoing losses as the primary reason for the negative sentiment. While recent quarterly results showed revenue growth and an improved gross margin of 13.9%, Nio continues to report net losses. In a shifting market environment that increasingly prioritizes profitability over pure growth narratives, these persistent red figures are a major liability.

The central question troubling Wall Street is whether Nio can ever achieve profitability amidst an intense price war, or if it is simply buying market share at an unsustainable cost.

Should investors sell immediately? Or is it worth buying Nio?

Intensifying Competition and Policy Headwinds

The competitive landscape is adding further pressure. In the same month, rival XPeng narrowly overtook Nio, delivering 36,728 vehicles. This neck-and-neck race in China's New Energy Vehicle sector forces investors to scrutinize not just growth rates, but also market share stability and operational efficiency.

Looking ahead, analysts are flagging another concern for 2026. The anticipated expiration of certain government subsidies in China may be artificially pulling demand forward into the current year, potentially setting the stage for a slowdown next year.

A Cautious Stance from Market Observers

The consensus among market experts remains cautious, largely maintaining a "Hold" rating on the stock. Nio's long-term technology, particularly its battery-swap network, continues to be viewed as a valuable asset. However, these strengths are currently overshadowed by near-term financial risks.

For the ongoing fourth quarter, Nio has provided an ambitious delivery guidance of 120,000 to 125,000 vehicles. Nevertheless, until the company can demonstrate that these record delivery numbers can translate into sustainable profits, market skepticism is likely to prevail. Investors are now demanding more than sheer volume; they require a clear and credible path to profitability.