NIO Inc.

Q2 2026 revenue was RMB 32.1 billion, up 69.1% year over year and 25.9% quarter over quarter. Vehicle sales were RMB 29.1 billion, up 80.1% year over year and 27.5% quarter over quarter; other sales were RMB 3.1 billion, up 7.2% year over year and 12% quarter over quarter. Gross margin was 18.4% versus 10% a year ago and 19% last quarter; vehicle margin was 18.5% versus 10.3% a year ago and 18.8% last quarter. R&D was RMB 2.1 billion, SG&A was RMB 4.4 billion, loss from operations was RMB 0.3 billion, and net loss was RMB 0.5 billion; excluding share-based compensation, adjusted operating profit was RMB 0.2 billion and adjusted net profit was RMB 26.1 million. Cash and cash equivalents, restricted cash, short-term investments and long-term time deposits totaled RMB 56.7 billion. For Q3, deliveries are expected to be 108,000 to 111,000 units. Management said Q4 target is an average of over 40,000 units per month, and mid- to long-term annual volume growth should be around 40% to 50%.

William Li framed the quarter as evidence that NIO’s premium BEV strategy is lining up with a market moving toward brand-led competition and system capability. He highlighted strong demand for the ES8 and ES9, meaningful growth for ONVO and FIREFLY, and the rollout of the latest NIO WorldModel to over 700,000 users. His tone was confident and focused on long-term positioning, saying the company is aligned with industry evolution and is confident in meeting operating targets.

Stanley Qu said revenue growth came from higher deliveries and a better product mix, while gross margin improvement was supported by more favorable mix despite rising raw materials and chip costs. He noted vehicle margin held at 18.5% and said the company continued to generate positive operating cash flow and free cash flow, lifting total cash to RMB 56.7 billion. On outlook, he said material costs could rise another RMB 2,000 to RMB 3,000 and that management aims to keep vehicle gross margin around Q2 levels in Q3 and Q4; CapEx is expected to be roughly RMB 6 billion to RMB 7 billion for the full year, and SG&A as a percentage of revenue should be around 10% to 11% in the second half.

Analysts pressed management on whether ES8 and ES9 demand is sustainable, and Li said demand remains strong, with ES9 orders still requiring a 3- to 4-month wait and about 3/4 of ES9 users coming from outside the existing NIO base. Questions on ONVO’s softer momentum led Li to say the brand is still early in building awareness and that NIO will expand Sky stores, targeted marketing, and new products while preserving ONVO’s premium family positioning. Management also addressed cost pressure, saying Q2 vehicle cost impact was about RMB 14,000 per car and that they expect another RMB 2,000 to RMB 3,000 increase, but believe pricing discipline and supply-chain optimization can protect margins.