Key Points
NIO Inc. (NIO) closed lower at $5.16 versus the previous close of $5.50, finishing the session down 6.18% and declining $0.34. The move extends recent weakness and underscores elevated risk sentiment around the name. At this price, the company’s market value sits at $13.60 billion, and its trailing 12-month EPS is negative at $-1.46, keeping valuation measures distorted and reflecting ongoing losses.
Trading occurred on below-average volume as the stock slipped further from key technical levels. NIO now trades 36% below its 52-week high of $8.02, reinforcing a persistent downtrend from the fall peak. Traders are monitoring the $5 zone as near-term support, with the prior close around $5.50 serving as an initial resistance area that would need to be reclaimed to stabilize momentum. Failure to hold the $5 level could invite additional selling pressure, while any bounce will likely face supply on approaches to the mid-$5s.
In recent sessions, NIO has struggled to maintain rebounds, with rallies fading quickly amid mixed sentiment toward Chinese EV makers. Competitive pricing, margin pressure, and delivery cadence have remained central investor discussions, contributing to choppy trading conditions. The broader EV space has also seen periodic risk-off moves as investors reassess growth expectations against cost structures and capital needs. Against that backdrop, NIO’s slide to $5.16 highlights a fragile technical setup and a market still demanding clearer evidence of sustainable operational and financial improvement before re-rating the shares.
Why NIO Inc. Price is Moving
NIO shares finished at $5.16, placing the company’s equity value at about $13.60 billion. On fundamentals, the EPS stands at $-1.46, consistent with an unprofitable profile and a negative P/E that complicates traditional valuation comparisons. The stock has traded between $3.02 and $8.02 over the past year, with the current price sitting materially below the top end of that range. Trading volume today ran below average, aligning with a session marked by steady selling rather than high-intensity capitulation.
The latest pressure comes as investors weighed a month-on-month decline in November vehicle deliveries. NIO reported 36,275 vehicles delivered in November, down from about 40,397 in October. While November still showed a robust 76.3% increase year over year, the sequential decline raised concerns about the durability of demand into year-end. This followed a Q3 2025 earnings print that featured a narrower adjusted loss per share of RMB 1.49 versus an expected 1.67 loss, but a revenue miss at RMB 21.79 billion (about $3.06 billion) against RMB 22.35 billion anticipated, reinforcing worries about sales pacing and pricing. Gross margin improved to 13.9% from 10.7% a year earlier, yet competition in China’s EV market continues to pressure profitability. Analyst reactions were cautious, with Citigroup trimming its target from $8.60 to $6.90 and Macquarie moving from outperform to neutral.
Taken together, the month-on-month delivery drop, revenue shortfall relative to expectations, and tempered analyst stance provided a clear catalyst for the roughly 6.2% decline on Dec. 1. With a negative P/E of approximately -3.76 and profitability still in the red, valuation support remains tenuous. Investors are balancing signs of operational progress, including year-over-year delivery growth and margin improvement, against execution risk, pricing dynamics, and the need to translate growth into sustainable earnings power.
What is the NIO Inc. Rating - Should I Sell or Buy?
Weiss Ratings assigns NIO a D rating. Current recommendation is Sell.
The rating is built on five indices: the Fair Growth Index suggests respectable top-line expansion, consistent with 16.73% revenue growth; the Very Weak Efficiency Index reflects poor profitability and capital returns, in line with a -31.40% profit margin and losses that leave the P/E ratio at -3.76; the Fair Solvency Index points to an adequate balance sheet footing; the Weak Total Return Index highlights subpar risk-adjusted performance versus benchmarks; and the Weak Volatility Index indicates elevated swings that hurt the stock’s overall risk/reward profile.
In aggregate, these factors explain why the stock holds a D rating despite areas of operational improvement. Growth alone is not sufficient to overcome the drag from very weak efficiency and weak total returns. Persistent losses, negative margins, and heightened volatility weigh on the risk model just as much as revenue growth supports the reward model. This balance tilts unfavorable for investors seeking stronger risk-adjusted prospects.
NIO’s D (Sell) reflects a weak overall profile where progress on growth and gross margins has yet to translate into durable profitability or consistent shareholder returns. The negative earnings profile, weak total return characteristics, and pronounced volatility overshadow intermediate-term improvements. Until efficiency and returns improve meaningfully, these headwinds are likely to keep the rating in the weak zone.
About NIO Inc.
NIO Inc. is a global smart electric vehicle company that designs, engineers, and sells premium battery-electric cars. Founded in 2014 by William Li, the company focuses on user-centric design, advanced software integration, and a comprehensive energy ecosystem to support ownership. NIO has built a brand around performance, technology, and service, including a direct sales and service model, flagship showrooms, and an expanding energy infrastructure centered on rapid battery swapping.
The company’s product lineup spans SUVs and sedans, targeting the premium segment. Core nameplates include the ES8 and ES6 SUVs and the ET7 and ET5 sedans, alongside coupe-inspired crossovers. Vehicles are built on software-defined architectures supporting over-the-air updates, advanced driver-assistance capabilities, and an in-car digital assistant designed to personalize the driving experience. Complementing the vehicles, NIO Power integrates home charging, public fast charging, mobile charging, and battery-swap stations. Battery-as-a-Service (BaaS) allows users to subscribe to battery packs separately from the vehicle, lowering upfront costs and enabling future upgrades.
NIO’s differentiation is anchored in its battery swapping technology, energy services, and emphasis on user experience through branded spaces and community events. The company has pursued international expansion with launches in select European markets, leveraging its premium positioning and technology stack to establish a foothold beyond China. Strategic focus areas include scaling production, expanding the energy network, and advancing software and assisted-driving features, all aimed at strengthening brand loyalty and enhancing the total ownership experience in the premium EV category.
Investor Outlook
With a D (Sell) rating, investors in NIO should monitor delivery trends into year-end, the trajectory of margins, and whether volatility moderates as sentiment stabilizes near the $5 level. Any sustained improvement in efficiency and total return would be most likely to influence the rating.
See full rankings of all D-rated stocks inside the Weiss Stock Screener.