(MENAFN- AsiaNet News)

• Investors are watching whether Nio's aggressive ES8 delivery target and multi-brand expansion can support its Q4 break-even goal.
• The company's first commercial smart-driving chip licensing deal has added a new revenue path ahead of Tuesday's results.
• Wall Street expects higher revenue and narrower losses, with consensus ratings sitting between 'Buy' and 'Hold.'

Nio, Inc. is set to report earnings before the U.S. market opens on Tuesday, with investors weighing whether a series of aggressive moves announced over the past week can alter the company's trajectory as losses narrow and revenue is expected to rise. 

The company's U.S.-listed stock broke an eleven-day losing streak on Friday, ending 3% higher after CEO William Li laid out a bold December delivery target for the company's new ES8 SUV at the Guangzhou International Auto Show. Meanwhile, Nio's Hong Kong stock gained 5%, and its Singapore-listed shares advanced 5.5% in mid-day Asian trade.

CEO Pushes For December Surge As Q4 Break-Even Goal Approaches

Li told attendees that Nio is aiming to deliver more than 15,000 units of the new ES8 in December, signaling a push he described as essential to the company's fourth-quarter profitability goals. The ES8 has become central to Nio's volume strategy after the company cut prices by nearly 30% from the previous generation and offered additional support to customers affected by delivery delays.

The ES8's momentum follows Nio's 221,970 vehicles in 2024 and, by October, 241,618, surpassing last year's total with two months remaining. Li previously said the model's production capacity would reach 10,000 units per month in October and 15,000 in December.

Firefly And Onvo Expand Mass-Market Reach

Last week, Nio accelerated its multi-brand expansion to capture lower-priced segments, adding pressure and opportunity heading into earnings. Firefly, its budget EV brand, surpassed 30,000 cumulative deliveries and began right-hand-drive production in Hefei for shipments to Singapore, followed by Macau and Hong Kong later this year.

Firefly delivered 26,242 vehicles in October, mostly in China, with exports to Norway, the Netherlands, and Belgium. Nio said the brand will expand into 17 global markets, with upcoming launches in Portugal, Greece, Luxembourg, Austria and Denmark, and further entries into the UK, Thailand and Australia targeted for 2026.

Chip Licensing Becomes A New Revenue Driver

Another development drawing investor attention before Tuesday's results is Nio's reported move to license its autonomous-driving chip technology, marking the company's first commercial step in monetizing one of its most capital-intensive programs.

Nio has reportedly begun supplying its Shenji NX9031 smart-driving chip to another automotive chipmaker under a licensing arrangement. Contract values vary widely depending on structure, with single IP licenses typically priced in the millions of yuan and system-on-a-chip agreements potentially reaching the hundreds of millions of yuan, according to industry estimates.

The NX9031, introduced in late 2023, offers computing power equivalent to four Nvidia Orin X chips. Nio uses two of them in its flagship ET9 sedan, while other newer models integrate one. 

What Wall Street Expects On Tuesday

Analysts expect Nio to report revenue of $3.14 billion for the period, up from $2.65 billion a year earlier. EBITDA is forecast at a loss of $415.99 million, while EBIT is expected to come in at a loss of $519.8 million, compared with a loss of $685.22 million last year. GAAP EPS is estimated at a loss of $0.23, with adjusted EPS projected at a loss of $0.22.

Koyfin data show a 12-month average price target of $6.83, versus Friday's close of $5.58, implying 22% potential upside. Consensus ratings sit between 'Buy' and 'Hold,' with 27 analysts covering the stock, with 4 rating it a 'Strong' Buy, 10 'Buy,' 10 'Hold,' 1 'Sell,' and 2 'Strong Sell.

Stocktwits Traders Expect 'Best Ever' Earnings Report

On Stocktwits, retail sentiment for Nio was 'bullish' amid 'normal' message volume.

NIO sentiment and message volume as of November 24 | Source: Stocktwits

One user said,“Too bad NIO continues to be held back by the endless losses from their battery swap network.” Another user said they did not plan to sell any shares ahead of what they expect to be Nio's“best ever” earnings report.

Nio's U.S.-listed stock has risen 28% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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