Why Nio Stock Surged Higher Today

Shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) shot higher by as much as 11.4% this morning. The move pushed Nio's American depositary shares to their highest level of the year.

After paring some of that early jump, Nio shares were still higher by 10.4% as of 11:30 a.m. ET.

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Critical earnings report coming

Today, Nio let investors know that it will be reporting its critical fourth-quarter and full-year financial data before the opening bell on Friday, March 21. Investors already know the company's EV delivery data. Last year was a big year for the company capped off by record monthly EV deliveries of over 31,000 in December.

But investors really want to hear what the company says about its two new mass-market brands, Onvo and Firefly. Onvo sales have begun, and Firefly has started taking preorders. Nio calls Firefly "a small, smart, electric high-end car targeting urban lifestyle users." It is priced as low as about $20,500.

Additionally, the company has been steadily increasing its vehicle margin from 9.2% in the first quarter to 13.1% in the third quarter. That metric has been helped by higher sales volumes. Nio's 2024 deliveries increased by 39% versus 2023, and that continued over the first two months of 2025 with a nearly 50% year-over-year rise. If margins continue to increase as volume ramps up, investors will finally see a path to profitability for Nio.

Nio also announced the expansion of a strategic partnership yesterday. The EV maker and automotive coatings specialist BASF Coatings -- a subsidiary of German chemical company BASF -- announced a letter of intent to hold "annual strategic dialogues" that focus on the exterior coatings of Nio vehicles.

Investors hope that is a sign of future efficiency and cost improvements as well as possibly adding to its product offerings. Nio's upcoming earnings and discussion on the state of its business have investors feeling optimistic today, pushing shares to 2025 highs.

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Howard Smith has positions in Nio. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.