Stock Market Today, May 21: Nio Stock Pared Early Gains After Revenue Surges and Adjusted Profit Returns

Chinese electric vehicle (EV) manufacturer Nio (NYSE:NIO) closed Thursday at $5.60, up 0.18%. The stock swung as traders reacted to Q1 2026 results showing surging revenue, improved margins, and a return to adjusted profitability. Ongoing net losses and updated delivery guidance have investors split on whether the company is at an inflection point.
Trading volume reached 96.1 million shares, coming in about 139% above its three-month average of 40.2 million shares. Nio IPO'd in 2018 and has fallen 16% since going public.

How the markets moved today

S&P 500 (SNPINDEX:^GSPC) inched up 0.18% to 7,446, while the Nasdaq Composite (NASDAQINDEX:^IXIC) added 0.09% to finish at 26,293. Within auto manufacturers, industry peers Tesla (NASDAQ:TSLA) closed at $417.85 (up 0.14%) and Li Auto (NASDAQ:LI) finished at $16.20 (up 0.12%) as investors assessed EV demand and new models.

What this means for investors

Nio shares initially spiked after its Q1 report showed revenue more than doubled year over year, gross margin continued to rise, and management guided for much higher second-quarter EV deliveries.

Nio delivered about 83,500 vehicles in the first quarter, but expects between 110,000 and 115,000 for Q2. That gave the stock early momentum, but gains were pared as investors considered its $45 million loss from operations. That was a decline from the approximately $100 million profit the company reported in the fourth quarter of 2025. Adjusted profit, excluding stock-based compensation, remained positive, however.

Investor focus will remain on that and the companies rising gross margin to see if it can achieve consistent profitability. Nio stock won’t likely break out unless that occurs.

Howard Smith has positions in Nio and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.