Nio Inc (NYSE:NIO), China-based electric vehicle maker, stock fell 7.37% (As on September 3, 11:24:12 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the second quarter of FY 25. It delivered 72,056 vehicles in the second quarter, up 25.6% year over year, including 47,132 vehicles from NIO, 17,081 units from ONVO and 7,843 units from FIREFLY. Revenues generated from vehicle sales amounted to $2.25 billion, up 4.2% year over year. The rise in sales was mainly attributable to an increase in delivery volume. Other sales of $401 million rose 65% on a year-over-year basis. Gross profit was RMB1,897.5 million (US$264.9 million) in the second quarter of 2025, representing an increase of 12.4% from the second quarter of 2024 and an increase of 106.3% from the first quarter of 2025. The adjusted loss from operations (non-GAAP) was RMB4,040.8 million (US$564.1 million) in the second quarter of 2025, representing a decrease of 14.0% from the second quarter of 2024 and a decrease of 32.1% from the first quarter of 2025. The adjusted net loss (non-GAAP) was RMB4,126.7 million (US$576.1 million) in the second quarter of 2025, representing a decrease of 9.0% from the second quarter of 2024 and a decrease of 34.3% from the first quarter of 2025.
Moreover, Vehicle margin in the reported quarter fell to 10.3% from 12.2% in the second quarter of 2024, due to lower material cost per unit. Gross margin was 7.6%, up from 4.9% in the year-ago quarter. The decline was attributable to changes in product mix. Research & development costs amounted to $419.8 million, which fell 4.2% year over year. Selling, general & administrative costs were $553.5 million, up 7.1% year over year. As of June 30, 2025, cash and cash equivalents totaled $992.7 million and long-term debt amounted to $1.27 billion. Meanwhile, in July 2025, NIO entered into a definitive agreement to exercise its right to make an additional investment of RMB20 billion in NIO China, pursuant to the previously announced NIO China Series B investment agreement.
NIO in the second quarter of FY 25 has reported the loss per American Depositary Share (ADS) of 32 cent, missing the analysts’ estimates for the loss per American Depositary Share (ADS) of 30 cent, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of percent to $2.65 billion in the second quarter of FY 25, missing the analysts’ estimates for revenue of $2.76 billion.
For third-quarter 2025, NIO projects deliveries in the range of 87,000-91,000 vehicles, implying a rise of 40.7-47.1% year over year. Revenues are estimated to be between $3,045 million and $3,193 million.