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NIO Inc. (NYSE:NIO) reported its second-quarter 2026 results on September 1, though it reflected the same tension that has been building around the company for months: operational improvement in China colliding with a European business that was continuously unraveling.
NIO Inc. (NYSE:NIO) shipped 107,658 vehicles in the second quarter of 2026, an increase of 49.4% year-over-year and 29.0% quarter-over-quarter across the NIO, ONVO, and Firefly brands. Revenue increased 69.1% year-over-year to 32.14 billion yuan, or around $4.74 billion, owing to better deliveries and an improved product mix, albeit revenue was nearly 2% below the company's previous projection and fell short of Wall Street's $4.95 billion consensus. Shares fell as much as 4.4%, trading at approximately $4.05-4.09, as investors focused on the revenue miss instead of the improved bottom line.
Vehicle gross margin was 18.5%, up from 10.3% the previous year and 18.8% in the first quarter, while overall gross margin increased to 18.4%, up from 10% in the second quarter of last year. Net loss fell to RMB0.5 billion, an 89.4% improvement year-over-year, though it increased 59% from the previous quarter, and adjusted net profit came in at RMB26.1 million, excluding share-based compensation. Management identified the ES8 and ES9 flagship SUVs as important drivers of the margin profile, with both generating vehicle margins of more than 20%, and underlined strong demand, including delivery wait periods of more than three months on certain ES9 variants.
