Nio revenue surges 112% in Q1 but faces 10,000 yuan cost headwind

Nio Inc. (NYSE: NIO) reported first-quarter revenue surged 112.2% to RMB25.5 billion ($3.7 billion) from a year earlier, as robust delivery growth and expanding margins were tempered by warnings of significant cost pressures.

“This year, rising costs for raw materials and chips have created over 10,000 yuan in cost pressure per vehicle for the entire industry,” founder and CEO William Bin Li said on the May 21 earnings call, adding that Nio will maintain price stability.

The electric vehicle maker delivered 83,465 vehicles in the quarter, a 98.3% year-over-year increase, though down from the prior quarter. Vehicle margin improved to 18.8% from 10.2% in the same period last year, while the company posted an adjusted net profit of RMB43.5 million ($6.3 million).

For the second quarter, Nio projects delivering 110,000 to 115,000 vehicles, representing up to 59.6% annual growth. The guidance suggests management is confident new models like the ONVO L80 can offset cost headwinds and sustain momentum in China’s competitive EV market.

Financials and Operations

Nio’s total revenues for the first quarter ended March 31 were RMB25,532.7 million ($3.7 billion), an increase of 112.2% year-over-year. Gross profit soared 428.4% to RMB4,859.1 million, pushing the gross margin to 19.0%, up from 7.6% in the year-ago period. The company’s net loss narrowed significantly to RMB332.1 million from a RMB6,750.0 million loss in Q1 2025.

Metric	Q1 2026 Actual	Q1 2025 Actual	YoY Change
Total Revenues	RMB25,532.7M	RMB12,034.7M	+112.2%
Vehicle Margin	18.8%	10.2%	+860bp
Gross Margin	19.0%	7.6%	+1,140bp
Deliveries	83,465	42,094	+98.3%
Adj. Net Profit	RMB43.5M	(RMB6,279.1M)	N/A

“In the first quarter of 2026, our vehicle margin stood at 18.8%, improving quarter-over-quarter for four consecutive quarters,” said Stanley Yu Qu, NIO’s chief financial officer. “We also maintained positive non-GAAP operating profit in the quarter, and cash reserves continued to increase.”

Brand and Model Strategy

Deliveries were spread across Nio’s multi-brand portfolio. The flagship NIO brand delivered 58,543 vehicles, while the ONVO and FIREFLY brands contributed 13,339 and 11,583 units, respectively. The company began deliveries of its ONVO L80 SUV in mid-May and is taking pre-orders for its premium ES9 flagship model.

Despite the strong annual growth, CEO William Bin Li emphasized a focus on sustainable expansion over chasing volume. The company’s commitment to price stability in the face of rising costs for components like memory chips will test its operational efficiency.

The strong guidance for the second quarter indicates Nio expects new model launches to drive market share gains. Investors will watch the Q2 results closely to see if margins can hold up against the cost pressures highlighted by management.

This article is for informational purposes only and does not constitute investment advice.