Nio's stock extended its slide in Hong Kong on Monday, falling to HK$26.95—more than 50% below its peak for the year—as investors digested a slowdown in the company's delivery growth. The decline also hit its US-listed ADRs, erasing billions in market value.
Delivery growth decelerates
September deliveries totaled 37,408 vehicles, a 7.7% increase from the same month last year. While that growth remains positive amid a challenging Chinese EV market, it marks a sharp deceleration from August, when deliveries rose 14% year-over-year. The Nio brand contributed 21,318 vehicles, while its Onvo and Firefly sub-brands delivered 8,763 and 7,327 units, respectively.
Despite the slowdown, Nio celebrated milestones: the ES8 reached 150,000 cumulative deliveries, ranking first among large SUVs priced above RMB400,000, and the ES9, launched in May, surpassed 30,000 deliveries.
Revenue growth expected to cool
Nio's second-quarter results were robust, with revenue soaring as deliveries jumped to 107,658 from 72,056 a year earlier. Vehicle revenue climbed 80% to $4.287 billion, and gross margin improved to 18.45%. However, analysts project third-quarter revenue growth of 51.49%, slowing to just 1.54% in the fourth quarter—a sign that the peak growth phase may be behind the company.
The deceleration mirrors broader trends among Chinese EV makers, with peers like Li Auto and XPeng also missing September delivery expectations.
EU import limits add pressure
Adding to the headwinds, the European Union is tightening restrictions on Chinese vehicle imports, including a limit on hybrid vehicle imports. Nio has been betting on international expansion to fuel future growth, making these trade barriers a significant concern.
Technical outlook remains bearish
On the daily chart, Nio shares have been in a sustained downtrend, falling from a high of HK$54.90 to current levels around HK$27. The stock trades below all major moving averages and has broken through the key support level of HK$34.96, which marked its February and March low. This technical breakdown suggests that short-sellers remain in control.
The next downside target is HK$25, and a move below that could open the door to further losses toward HK$20.
This article is for informational purposes only and does not constitute financial advice.
