In the first quarter of 2026, the overall profit margin of China’s new energy vehicles dropped to 3.2%, the lowest in history. Among them, “NIO Inc.” suffered comprehensive losses, with a net loss of 2.276 billion yuan; the overall gross profit margin dropped from 20.5% in the same period last year to 7.9%, hitting the lowest level since its listing.
On the evening of May 28, NIO Inc. (02015.HK/LI.US) announced that in the first quarter of 2026, the company achieved operating income of 22.983 billion yuan, a decrease of 11.4% year-on-year and 20.1% quarter-on-quarter; vehicle sales revenue was 21.533 billion yuan, down by 12.7% year-on-year.
The net loss was 2.276 billion yuan, compared to a net profit of 647 million yuan in the same period last year; under non-US GAAP, the net loss was 2.108 billion yuan, compared to a net profit of 1.014 billion yuan in the same period last year. The overall gross profit margin plummeted from 20.5% in the first quarter of 2025 to 7.9%, and the vehicle gross profit margin dropped to 6.1%, a 13.7% year-on-year decline and a 10.7% quarter-on-quarter decline. This means that for every car sold, NIO Inc. can only make a gross profit of 6.1% after deducting direct costs, which can barely cover research and development, sales, and management expenses.
In the first quarter, NIO Inc. delivered a total of 95,100 vehicles, a 2.5% year-on-year increase, far below industry expectations.
In terms of expenses, NIO Inc.’s sales, general, and administrative expenses in the first quarter were 2 billion yuan, a 19% decrease year-on-year. However, in terms of research and development, NIO Inc. still maintained a high level of R&D investment, with R&D expenses reaching 2.7 billion yuan in the first quarter, an 8.3% year-on-year increase, mainly for the development of pure electric platforms, self-developed chips, and smart driving systems.
On the day of the financial report release, NIO Inc.’s U.S. stock price fell by 5% in pre-market trading, opening lower and continuing to decline. The opening price was $15.04, the highest price was $15.69, and the lowest price was $15.03. At the close on May 28, the stock price fell by 1.52% to $15.54 per share.
NIO Inc. is a leading force in China’s auto industry, achieving profitability for the full year in 2023. However, in 2025, the company experienced operating losses and maintained profitability for the full year only through interest and other income.
According to data from the National Bureau of Statistics of the Communist Party of China, in the first quarter of 2026, the overall profit margin of the auto industry dropped to 3.2%, the lowest in history.
According to data from the China Association of Automobile Manufacturers, in the first quarter, China’s retail sales of new energy passenger vehicles amounted to 1.822 million vehicles, a drastic drop of 26.7% year-on-year, and the penetration rate fell from over 50% in the fourth quarter of 2025 to 42%.