Here's Why Nio Stock Surged 10% Today
Key Points
Nio expects its first quarter of operating profit, excluding share-based compensation.
The company isn't expected to report its full financial results until mid-March.
Analyst upgrades or increased price targets may follow.
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Chinese electric vehicle (EV) maker Nio (NYSE: NIO) provided investors with a surprise update today, and the stock surged in response. Specifically, the company provided "a profit alert for the fourth quarter of 2025."
Shares jumped by more than 10% and were still up 10% as of 2:14 p.m. ET.
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Image source: Nio.
A first for Nio
Nio's alert said the company now expects to achieve its first-ever adjusted profit from operations in the fourth quarter. The range of $100 million to $172 million was also impressive, as it represents a solidly profitable operating quarter, excluding share-based compensation expenses.
It seems likely that, in response to the surprise announcement, analyst predictions for Nio stock will soon shift to the upside. Nio cited "sustained growth in sales volume in the fourth quarter of 2025" and "the optimization of vehicle margin driven by a favorable product mix" as the drivers of the positive news. It also noted ongoing cost reduction and optimization efforts to achieve the milestone.
Nio's EV deliveries have been soaring. December deliveries were a record 48,135 units, and a typically slower January notched a 96% jump versus January 2025. If the company has turned the corner on a sustainable path to profitability, investors could continue to bid up the stock.
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Howard Smith has positions in Nio. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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