In the second quarter of 2026, NIO’s financial report showed that its adjusted operating profit reached 207 million yuan, achieving profitability for three consecutive quarters, and its cash reserves increased to 56.7 billion yuan. Despite these positive results, its stock price on the Hong Kong stock market fell by more than 6% that day. Due to rising raw material costs and AI models taking over production capacity, the cost of each vehicle is expected to increase by approximately 17,000 yuan in the second half of the year, weakening the effect of economies of scale. Therefore, NIO has adjusted its strategy: it will no longer prioritize sales growth as its primary goal, but instead focus on maintaining its gross margin and stable prices, and withdraw some tax subsidies. In the first half of the year, revenue increased by 85.8% year-on-year, and the gross margin rose to 18.5%. Founder Li Bin said that NIO will concentrate its resources on the field of intelligent electric vehicles, seek funding through a spin-off to develop embodied intelligence, and avoid blindly pursuing market leadership, aiming to achieve sustainable profitability first to solidify user relationships and brand foundation.
NIO released its financial report for the second quarter of 2026. The adjusted operating profit reached 207 million yuan, marking three consecutive quarters of profitability. Cash reserves increased to 56.7 billion yuan, a 8.5 billion yuan increase from the previous quarter. Despite these positive results, NIO’s stock price fell more than 6% on the day, hitting a 52-week low. Founder Li Bin stated during a media briefing that due to rising prices of upstream raw materials and AI technology dominating supply chain capacity, the cost of each vehicle is expected to rise by about 17,000 yuan in the second half of the year, breaking the law of scale economy. Therefore, NIO has adjusted its strategy: no longer prioritizing sales growth, but instead focusing on maintaining profit margins and stabilizing prices. It will also continue to reject discounts aimed at increasing sales at the expense of quality. In the first half of the year, revenue reached 57.67 billion yuan, a 85.8% increase from the previous year; gross margin increased to 18.5%. Li Bin emphasized that NIO will concentrate its resources on intelligent electric vehicles, using divestment and financing to develop embodied intelligence. They will not blindly pursue being “the first,” but rather aim to achieve sustainable profitability first, in order to strengthen user relationships and brand foundation.