NIO Stock Volatility Persists Despite Record Deliveries

SHANGHAI, China — NIO Inc. (NYSE: NIO) finished trading on December 29, 2025, at about $5.34, reflecting a 4.71% increase from the previous session. This comes as the Chinese electric vehicle maker has been posting record deliveries while grappling with a volatile stock price.

As of December 6, NIO’s stock hovered around $5 after closing at approximately $5.04 on December 5. The stock’s market cap stands between $12 billion and $13 billion. In the last year, shares traded between $3.02 and $8.02, reaching the peak at $8.02 on October 2, 2025. Despite recent strong operational metrics, including a 76% year-over-year delivery increase in November, the stock remains over a third below its peak.

NIO’s leadership has released positive quarterly results, reporting unaudited Q3 figures that detailed significant top-line growth and narrowing losses. This growth included 36,928 vehicles delivered under the NIO brand, alongside strong contributions from its sub-brands, Onvo and Firefly.

Despite this operational success, analysts express caution regarding profitability. The company faced challenges after falling short of revenue expectations, which stood at approximately $3.06 billion, missing analyst projections of $3.1 billion. Moreover, the autonomous driving chip licensing announcement diminished investor confidence following a nine-day losing streak for shares.

Looking ahead, management has set ambitious delivery targets for Q4, estimating between 120,000 and 125,000 vehicles, implying a critical need for strong December sales to achieve these goals. However, concerns about pricing pressures due to fierce competition in the Chinese EV market continue to loom, especially amid reductions in government subsidies.

As the company works to solidify its footing, NIO has expanded product offerings, launching the Onvo and Firefly brands, which contribute to its delivery volumes. CEO William Li indicated a bullish outlook for Q4, suggesting minimal reliance on discounts to drive demand. Additionally, recent updates have revealed a significant production milestone, with the delivery of the 40,000th ES8 SUV within just 100 days of the model’s launch.

Investors remain cautious, considering headwinds in production costs and an increasingly competitive landscape. As noted by industry analysts, any adjustments in pricing strategy will be crucial for NIO’s ability to stabilize stock performance as it approaches 2026.