Nio Stock Hits 52-Week Low as Q3 Guidance Disappoints Investors

Shares of Nio Inc. (HK:9866) fell sharply in Hong Kong trading, dropping 5.2% to close at HK$29.44 after hitting a 52-week low of HK$29.28 intraday. The sell-off was triggered by the company's third-quarter guidance, which disappointed investors and overshadowed otherwise strong second-quarter earnings.

Outlook Clouds Strong Q2 Performance

Nio's second-quarter results showed significant growth, with total revenue surging 69.1% year-over-year to ¥32.14 billion, according to its latest earnings report. Vehicle deliveries for the quarter also climbed 49.4% to 107,658 units.

However, the company's forward-looking statements raised concerns about slowing momentum. Nio's management provided the following guidance for the third quarter:

• Projected Revenue: Between ¥33.3 billion and ¥34.1 billion, well below the Wall Street consensus estimate of approximately ¥36.0 billion.
• Projected Deliveries: Between 108,000 and 111,000 vehicles, suggesting minimal sequential growth from the second quarter.

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Growth Concerns Mount

The cautious outlook was compounded by recently released August delivery figures. While Nio delivered 35,836 vehicles in August, a 14.5% year-over-year increase, some investors interpreted this as a marked slowdown compared to the pace set in the second quarter, further fueling concerns about near-term demand.

Broader market conditions provided an unfavorable backdrop for the stock. Hong Kong's Hang Seng Index fell for a third consecutive session, declining approximately 0.8% amid geopolitical tensions. Furthermore, rising bond yields in developed markets continue to exert pressure on growth-oriented sectors, including technology and electric vehicle stocks.