The electric vehicle manufacturer Nio, considered one of Tesla’s main Chinese rivals, announced this Friday, 6, that it expected to make a profit, for the first time in the company’s history.
In a statement sent to the Hong Kong Stock Exchange, where it is listed, the car manufacturer indicated that profit for the fourth quarter should be between 200 and 700 million yuan (between 24 and 86 million euros).
Nio also presented an alternative and adjusted metric that would increase the positive result to around 1.2 billion yuan (147 million euros), which would contrast with losses of around 5.54 billion yuan (677 million euros) in the same period in 2024.
The company attributes the evolution to the growth in sales – which increased almost 72% year-on-year in the fourth quarter, to around 125 thousand vehicles –, the optimization of margins and initiatives to reduce costs and improve operational efficiency.
In any case, the company is not expected to publish final audited results before March.
After the news broke, Nio shares in Hong Kong rose 7.22% during the morning session.
There are around 50 companies that manufacture electric vehicles in China, the world’s largest market, but only a handful of them – such as BYD, Xiaomi or Leapmotor – have managed to show profits, an increasingly difficult goal due to excess production and price wars in the sector to attract customers in the face of weak domestic demand.
Electric sales fell more than 42% between December and January, after authorities reduced tax incentives for purchases. Analysts predict that 2026 will be marked by lower demand, after years of dizzying expansion, driven in part by government support, also in the form of subsidies.
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