NIO: Shrinking Losses, Industry-Leading Margins And An Undervalued Price Tag

The Asian Investor 33.11K Followers Follow Summary NIO surpassed Q2 earnings expectations, driven by strong delivery growth and improved vehicle margins. Premium models ES8 and ES9 support NIO's vehicle margins, fostering optimism for future profitability. NIO trades at a depressed 0.35x price-to-revenue multiple, offering significant upside if margin improvements and delivery growth persist. The positives of NIO's Q2 earnings report also widely outweighed the negatives, creating a buying opportunity for long-term investors. Despite ongoing operating losses, I maintain a 'Strong Buy' rating based on delivery momentum and margin expansion potential. Sundry Photography/iStock Editorial via Getty Images NIO ( NIO )( NIOIF ) surpassed Wall Street’s expectations for second quarter earnings amid a near-50% delivery boost compared to the year-earlier period. NIO by far achieved the highest year-over-year delivery growth in Q2'26 in its EV industry group, but suffered a small This article was written by The Asian Investor 33.11K Followers Follow I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst’s Disclosure: I/we have a beneficial long position in the shares of NIO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.