By Jiahui Huang

NIO shares fell sharply in Hong Kong after the Chinese automaker offered soft fourth-quarter guidance despite a beat in third-quarter gross profit margin.

Shares fell 7.0% to 43.56 Hong Kong dollars on Wednesday. The benchmark Hang Seng Index was recently up 0.4%.

NIO guided for sales of 120,000 to 125,000 units for the fourth quarter. That implies slightly sequential growth for November and December sales, but remains below the company's previous guidance of 150,000 units, Nomura analysts wrote in a note.

That said, the company said it remains confident in breaking even on an adjusted profit basis for the fourth quarter and 2026.

Achieving that profitability measure is achievable in the fourth quarter, said Bernstein analysts in a note. However, they are cautious about NIO's outlook and the sustainability of achieving healthy breakeven levels in 2026.

"We are particularly concerned that some cost reductions, especially in R&D, could impact the company's long-term position and technological competitiveness," the Bernstein analysts added.

NIO has tried to set itself apart in China's crowded EV space by focusing on advancing battery technology. It relies on battery-swapping stations rather than battery-charging ones for better efficiency, but the former requires higher setup costs

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

November 25, 2025 22:08 ET (03:08 GMT)

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