Nio Inc. posted some solid earnings in the second quarter in fiscal year 2025, with vehicle sales and revenue soaring well, in a good sign for the company.

Making steady profits is still tough, though, even if losses have come down a bit from before.

Analysts are happy to see more cars being delivered as it shows there’s real demand, but high operating costs are still a problem, making it hard for the company to stay consistently profitable.

Nio’s Q2 2025 performance

In Q2 2025, Nio delivered 72,056 vehicles, up 25.6% from a year ago and an impressive 71.2% compared with the previous quarter.

The jump shows growing demand for both its luxury models and newer mainstream EVs, ONVO and Firefly.

Revenue reached RMB 19,008.7 million (US$2,653.5 million), up 9% from last year and nearly 58% higher than the previous quarter.

Of the cars delivered, 47,132 were from Nio’s premium line, 17,081 from the family-oriented ONVO, and 7,843 from the compact luxury Firefly, helping the company expand its appeal across different segments.

Gross profit came in at RMB 1,897.5 million (US$264.9 million), up 12% from a year ago and more than double the previous quarter.

Gross margin edged up to 10% from 9.7% last year and 7.6% in Q1, suggesting operations are getting a bit more efficient.

Vehicle margins dropped to 10.3% from 12.2% a year ago, though they’re slightly better than last quarter.

On the whole, Nio’s operational loss narrowed to RMB 4,908 million (US$685.2 million), down about 6% from last year and 24% from Q1, showing the company is making some headway on controlling costs.

Strong demand for models like the ONVO L90 and the All-New ES8 helped boost results.

Management is now projecting Q3 deliveries of 87,000 to 91,000 vehicles, which could set a new record and represent 40–47% growth year over year.

At the same time, the company’s spending on new battery swapping stations and expanding its product lineup is still putting pressure on short-term profits.

What analysts say?

After the earnings release, Nio stock plunged over 3% in the premarket trading. Analysts are cautiously optimistic, even after Nio’s stock has jumped about 45% year-to-date through late August.

Wall Street had expected a loss of roughly $0.30–$0.31 per share for the quarter, with revenue around $2.76 billion, up about 15% from last year.

The company’s actual results came in close to or slightly above these forecasts, and stronger-than-expected vehicle deliveries helped Nio gain market share in China’s competitive EV market.

Still, cost pressures are keeping some of the excitement in check.

Analysts note that while Nio’s revenue growth is strong, vehicle margins are squeezed by price competition and higher operating costs, especially for R&D, staffing, and expanding the battery swap network.

In the past four quarters, Nio has missed EPS estimates three times, with only one beat, which has kept some investors cautious.

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