Evaluating Nio Stock's Actual Performance

Shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) surprised the market as they soared more than 120% between July and October. Even though the stock has given up some of those gains, it's still up significantly so far this year.

But how has that compared to the broader market, and how are long-term Nio investors doing? Here's how Nio's stock has actually performed for its shareholders.

1 year: Beating the market

Nio's shares have taken investors on a roller coaster ride over the past year. In April, they were down nearly 30% from their price on Dec. 1, 2024. But in July, they jumped back into positive territory, and they jumped again in August and in September. By early October, they were up 76% from their Dec. 1 price.

November wasn't kind to the automaker, though, as shares slid throughout the month. Today, they're up just 15.7% from their year-ago price. That's still beating the S&P 500's 12.9% return, but not by much.

Would an earlier investment have fared better?

3 years: A disaster

If you'd invested in Nio on Dec. 1, 2022 instead, you'd be very disappointed in the stock's performance. Even at its 2025 peak, the company's shares were down 40% from Dec. 1, 2022, and today, they're down 59.4%. Ouch!

If you'd invested in the company between January 2025 and July 2025, or at certain low points in 2024, you'd still be ahead. But those who bought in any time between December 2022 and January 2024 have lost money on their investment. This especially hurts because the S&P 500 is up 67% over that same three-year period, meaning a Nio investment is trailing the market by 126.6 percentage points!

It can't be any worse for longer-term investors... can it?

Image source: Getty Images.

5 years: A complete catastrophe

If you bought Nio shares on Dec. 1, 2020, bad news: You bought Nio very close to its all-time high. The stock plunged throughout most of 2021 and all of 2022 (and on through the first half of 2025), meaning the five-year return on a Nio investment is a jaw-dropping negative 89.7%.

Adding insult to injury, the S&P 500 is up by almost the same amount that Nio is down over that time, with an 88.1% five-year return. That means Nio investors who bought in five years ago are losing to the market by an unbelievable 177.8 percentage points.

For the last five years, Nio has been trying to achieve profitability and grow its market both inside and outside of its native China, but as its share price attests, it's been slow going. The fact that Nio has been such a big underperformer for so long explains why it's seen as a very risky and speculative stock. Investors should think carefully before taking a stake in this car maker.

John Bromels has positions in Nio. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.