This article first appeared on GuruFocus.
Nio (NYSE:NIO) shares retreated more than 6% in Hong Kong on Wednesday after the electric-vehicle maker projected fourth-quarter revenue that came in below market expectations.
The company said it expects sales of up to 34.04 billion yuan for the quarter. That outlook trails analyst estimates of about 34.7 billion yuan reported by Bloomberg News.
Nio also guided for deliveries of 120,000 to 125,000 vehicles. That range is below consensus forecasts for the period.
Executives said they still aim to reach adjusted breakeven in the fourth quarter and maintain that progress in 2026. The Shanghai-based automaker has been targeting cost controls and efficiency improvements to support margins.
Analysts at Bernstein wrote that achieving the profitability goal this quarter appears possible. However, they warned that sustained breakeven into next year could be difficult.
They added that reductions in areas such as research and development may pressure Nio’s longer-term competitiveness if spending drops too far.