This article first appeared on GuruFocus.
Nio (NYSE:NIO) took a hit in Hong Kong trading on Wednesday, dropping 7.3% after the company rolled out a Q4 outlook that came in a bit underwhelming. Nio expects revenue to reach up to RMB34.04 billion (US$4.8 billion), just shy of the RMB34.7 billion analysts were looking for. Its delivery forecast 120,000 to 125,000 vehicles also fell short of Street expectations.
Even so, Nio insisted it’s still on track to break even on an adjusted basis in Q4 and carry that momentum into 2026. But analysts aren’t fully convinced. Bernstein said the breakeven goal is doable, yet they worry about what comes after, especially if Nio’s recent cost cutting including in R&D ends up hurting the company’s long-term tech leadership.
With the stock reacting quickly to the softer guide, investors will now watch Q4 closely to see whether Nio can actually hit its targets and keep improving margins into next year.