Nio Says Profitability Is Just Around the Corner. Should You Buy NIO Stock Here?

Core Viewpoint - Nio is set to report its first-ever adjusted profit in Q4 2025, with non-GAAP operating profit expected between RMB 700 million and RMB 1.2 billion, a significant improvement from a loss of RMB 5.5 billion last year [1]. Group 1: Financial Performance - Nio's stock has surged recently, but it remains down over 35% from its October high, making it attractive for long-term holding [2]. - The profitability milestone is attributed to growing sales and cost-cutting measures, with successful reductions in manufacturing costs potentially boosting margins over time [4]. - Nio shares are trading at a compelling 0.94x sales, making them less expensive compared to peers like Xpeng [5]. Group 2: Growth Potential - Nio's recent launch of the ONVO and Firefly brands positions the company to capture both premium and budget-conscious consumers, with management guiding for an annual growth trajectory of at least 40% [6]. - The expanding battery-swapping network has surpassed 100 million cumulative swaps, providing a competitive advantage [7]. Group 3: Market Sentiment - Wall Street analysts remain bullish on Nio shares for the next 12 months, with a consensus rating of "Moderate Buy" and a mean target of $6.17, indicating potential upside of over 25% from current levels [8][10].