The Motley Fool·2025-09-06 07:32Core Insights - Nio's stock experienced a decline following the release of its second-quarter earnings, despite showing potential for future growth [1] - The ongoing price war in the Chinese automotive market is impacting Nio's performance and margins [1][11] Financial Performance - Nio reported an adjusted operating loss of $564 million on sales of $2.7 billion, which was better than Wall Street's expectation of a $620 million loss [2] - The company's sales improved from the previous year's second quarter, where it posted a loss of $673 million on sales of $2.4 billion [2] - Total revenues reached $2.65 billion, marking a 9% increase year-over-year, while vehicle sales generated $2.25 billion, a modest 2.9% increase [7] Delivery and Production - Nio delivered 72,056 electric vehicles in the second quarter, a 25.6% increase compared to the previous year and a 71.2% increase from the first quarter of 2025 [3] - The launch of the Onvo L90 SUV and the upcoming ES8 model are expected to drive further delivery growth [6] Pricing and Margins - The average selling price of Nio's vehicles decreased to approximately $31,000 from about $38,000 a year ago, reflecting the impact of the price war [8] - Vehicle margins fell to 10.3% in the second quarter, down from 12.2% in the prior year [8] Market Outlook - Nio anticipates delivering around 89,000 vehicles in the third quarter, a significant increase from the previous year's 62,000 [10] - Projected sales for the third quarter are expected to be around $3.1 billion, which is below Wall Street's forecast of $3.4 billion [10] - The company is implementing cost reduction strategies to mitigate the effects of the price war and support margins [11]