TLDR
- Nio shipped first right-hand-drive vehicles to Singapore this week with Great Britain and Thailand launches planned for 2026
- October deliveries jumped 92.6% year-over-year with Firefly brand delivering 5,912 units representing 14% of monthly volume
- Company reports Q3 results November 25 with analysts projecting $0.22 loss per share versus $0.30 loss year-ago
- Goldman Sachs raised target to $7 from $4.30, sees break-even arriving in 2028 instead of 2029
- Analysts give Moderate Buy rating with average target of $6.90 implying 23.66% upside potential
Nio just completed its first shipment of right-hand-drive vehicles to Singapore. The Chinese EV maker is targeting international growth as domestic competition intensifies.
The company has Great Britain and Thailand on deck for 2026 entry. These markets offer opportunities without the punitive tariffs hitting other regions.
Delivery numbers show the strategy is working. October saw a 92.6% increase compared to last year. The company is up 42% year-to-date on deliveries.
Nio’s Firefly brand is leading the charge. The sub-brand was built specifically for global markets, focusing on compact cars that make up 17% of worldwide sales. Europe holds about one-third of that segment.
Firefly moved 5,912 units in October. That’s only 14% of Nio’s total monthly deliveries, suggesting substantial growth potential ahead.
Q3 Results Coming Tuesday
The company releases third-quarter earnings before Tuesday’s opening bell. Wall Street expects a $0.22 per share loss, improving from the $0.30 loss posted in Q3 2024. Revenue forecasts sit at $3.12 billion versus $2.6 billion last year.
Trading at $5.58, the stock has gained 28% this year. Options activity suggests traders expect a 12.7% move when results drop.
Goldman Sachs analyst Tina Hou lifted her price target to $7 from $4.30 while keeping a neutral stance. She boosted 2026-2030 revenue projections by 6%-11% and now sees the company reaching profitability in 2028.
Hou’s gross margin estimates increased 2%-3% on better production efficiency. She highlighted improved design and performance in the L90 and ES8 models as key drivers.
Fighting Through Price Wars
The international push reflects challenges back home. China’s EV sector is caught in a brutal price war squeezing margins across the board. Chinese automakers are responding by ramping exports from 1 million vehicles at decade’s start to an expected 7.5 million this year.
Exporting helps Nio fill production capacity during an overcapacity crisis. Tariffs forced European price hikes, but the vehicles stay competitive on cost.
The right-hand-drive expansion positions Nio closer to the U.S. market, though tariffs currently block that entry. Ford CEO Jim Farley has called Chinese EV makers an “existential threat” to American manufacturers.
Nio designed Firefly’s digital system with European tastes in mind. Two more models arrive in 2026: the L80 and ES9, plus a refreshed ES7. These launches should keep momentum building if they perform like recent releases.
The company holds a Moderate Buy consensus from analysts. Six rate it a Buy, six say Hold, and one recommends Sell. The $6.90 average target suggests 23.66% upside from current prices.
The stock remains unprofitable in a capital-heavy industry facing stiff competition at home and abroad. Small position sizing makes sense for investors willing to bet on the long-term vision.
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