NIO Inc. reported an operating profit of RMB 66.8 million for Q1 2026. This marks the company’s second consecutive quarterly profit.
Total revenue surged 112.2% year-over-year to RMB 25.53 billion, exceeding company guidance. Overall gross margin reached a four-year high of 19.0%.
NIO shares fell over 6% on May 22 despite the record results. Analysts attribute the decline to profit-taking following a 33% sequential drop in vehicle deliveries from Q4.
A wider sell-off in U.S.-listed Chinese shares also impacted the stock. This follows China's regulatory crackdown on illegal cross-border retail trading.