Nio shares fell more than 5% in pre-market trading on Tuesday after the Chinese electric vehicle maker reported wider first-quarter losses and a sharp drop in cash reserves from 42 billion yuan ($5.7 billion) to 26 billion yuan ($3.6 billion).
However, the stock has rebounded since then, rising more than 9% from the early Tuesday low of $3.32.
While several Wall Street analysts described the company’s second-quarter vehicle delivery guidance as in line with expectations, ambitious targets were unveiled during the earnings call that followed the results.
Management projected delivery volumes for the final quarter of the year to more than double from current levels.
Nio’s founder and chief executive William Li said the company expects monthly deliveries of 25,000 vehicles for its core Nio brand in the fourth quarter, supported by the launch of four refreshed models in May and an upgraded version of the ES8 SUV.
The Onvo sub-brand, which targets family buyers, is also aiming to reach 25,000 monthly deliveries in the same period, with two new models — the L80 and L90 — scheduled for launch in the third and fourth quarters.
Together, these figures would bring Nio Group’s monthly deliveries to 50,000 vehicles.
But that number excludes Firefly, the group’s most affordable model to date. The compact hatchback, which shares its name with the new entry-level brand, began deliveries in China in April following its December unveiling.
Earlier this year, Li said he would like Firefly to account for 10% of Nio Group’s total sales “in the long run,” citing BMW’s Mini brand as a benchmark.
The model starts at 119,800 yuan ($16,630) in China, including the battery.
Nio aims to more than double deliveries in 2025, after delivering 221,970 vehicles last year. The company is targeting over 440,000 units this year across its three brands.
In addition to launching new models, the company is transitioning to a hybrid retail model outside China that incorporates third-party dealerships alongside its existing direct-to-consumer showrooms in select markets.
The shift comes as the company aims to lower capital requirements and accelerate overseas expansion while increasing brand awareness — following a similar approach taken by other Chinese automakers including BYD and XPeng.
On Tuesday, Nio confirmed it will enter Belgium, Austria and Hungary later this year, and expand into Luxembourg, Romania, Czechia, Poland and other markets in 2026.
Local distribution and service of both Nio and Firefly vehicles will be handled by regional partners, including the Heidin Mobility Group and AutoWallis.
“We have already partnered with more than 10 partners in more than 15 markets, and we are bringing more partners onboard for more or for broader market entry,” Li said during the earnings call.
Nio reaffirmed its goal of achieving breakeven by the fourth quarter, citing efforts to more than double deliveries while cutting R&D investments, SG&A expenses and continuing cost-reduction initiatives.
Despite the year over year improvement in vehicle and gross margins, the company’s operating loss widened to 6.418 billion yuan ($884.4 million), up 19.0% from a year earlier and 6.4% from the previous quarter.
