Nio Inc. (NIO) shares trade below $5 per share as investor skepticism persists over the Chinese EV maker’s profitability and production outlook. Analysts weigh the risks and potential upside of the stock’s deep discount.
- NIO stock closed at $4.87 on December 20, 2025, below $5 for the first time since early 2023.
- NIO reported Q3 2025 revenue of $1.9 billion, down 12% YoY, with net losses of $215 million.
- Short interest in NIO reached 14.3% of float by late December 2025.
- NIO’s price-to-sales ratio is 0.32, well below the EV industry average of 0.75.
- Production volume declined 9% QoQ in Q3 2025.
- The company expanded its battery-swapping network to 3,200 stations by end-2025.
Nio Inc. (NIO) has fallen to sub-$5 levels in recent trading, marking a significant decline from its 2021 peak above $50. The stock closed at $4.87 on December 20, 2025, reflecting a year-to-date drop of approximately 68% amid broader market pressures on Chinese tech and automotive equities. This valuation places NIO’s market capitalization below $8 billion, a fraction of its peak value, raising questions about long-term viability and funding sustainability. The company reported third-quarter 2025 revenue of $1.9 billion, a 12% year-over-year decrease, with net losses widening to $215 million, up from $178 million in the same period last year. Despite these challenges, Nio continues to expand its vehicle lineup, launching its new ET9 SUV in November 2025 and increasing battery-swapping station count to 3,200 across China. However, production volume declined by 9% quarter-over-quarter, signaling ongoing operational headwinds. Market sentiment remains cautious, with short interest in NIO rising to 14.3% of float as of late December, indicating bearish positioning. The stock’s price-to-sales ratio stands at 0.32, significantly below the industry average of 0.75 for global EV manufacturers. This valuation gap suggests potential undervaluation, but only if Nio can stabilize margins and regain production momentum. Investors considering a long position should monitor upcoming Q4 delivery numbers and the company’s capital expenditure plans. The stock’s performance may also hinge on broader macroeconomic trends in China’s auto sector and policy support for electric vehicle adoption.