Why Nio Stock Accelerated 19.4% Higher in September

Key Points

• Nio reported strong year-over-year growth in vehicle deliveries for August.

• The company reported favorable Q2 2025 financial results, including revenue growth and a slimmer net loss.

• Since it consistently generates a net loss, Nio isn't a great choice for investors with low tolerances for risk.

• 10 stocks we like better than Nio ›

After driving more than 30% higher in August, Chinese electric vehicle (EV) maker Nio (NYSE: NIO) continued powering higher last month. Investors found good news bookmarking September, with the company reporting strong quarterly earnings early in the month, through the end of the month, when Nio posted encouraging September sales.

According to data provided by S&P Global Market Intelligence, shares of Nio rose 19.4% in September.

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Strong vehicle deliveries was only one of several green flags investors

From the starting line in September, Nio gave investors a reason to cheer. The company reported 31,205 vehicle deliveries for August, a 55.2% year-over-year increase. Nio's performance was especially impressive considering it grew vehicle deliveries in July a mere 2.5% compared to July 2024.

Further good news came on Sept. 2, when Nio reported second-quarter 2025 financial results. In addition to growing revenue 10% year over year, the company reported a slimmer net loss. Nio posted an adjusted loss per share of $0.25 in Q2 2025 compared to an $0.30 adjusted loss per share in Q2 2024.

Management also charged up investors' excitement for the EV maker's stock with an auspicious outlook for the third quarter: vehicle deliveries of 87,000 to 91,000. Should the company achieve this forecast, it will represent a year-over-year increase of 40.7% to 47.1%.

In response to its Q2 2025 financial report, Wall Street grew increasingly bullish on Nio. Mizuho raised its price target on Nio stock to $6 from $3.50, while Bank of America bumped its price target up to $7.10 from $5.

Growing increasingly optimistic about Nio stock's upside over the ensuing weeks, Bank of America revisited the price target two weeks later and raised it to $7.60. Citigroup took the pole position for the most bullish on Nio stock in September, however; it raised it price target to $8.60 from $8.10, keeping a buy rating on the stock

Is Nio stock a buy now?

While Nio stock was in reverse for the first half of 2025, shares have shifted gears and driven higher in the second half of the year as the company continues to report growth -- growth that extended into September. The company recently reported 34,749 vehicles deliveries for September 2025, a year-over-year increase of 64.1% and a new monthly record.

Impressive as the company's performance may be, the company is still consistently unprofitable, making it an undesirable option for investors looking to mitigate their risk exposure. Fortunately, there are plenty of other EV stocks to consider.

Should you invest $1,000 in Nio right now?

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Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.