NIO (NYSE:NIO) Shares Down 5.2% – Should You Sell?

29 Sep 2026, 21:41 by Danessa Lincoln · The Markets Daily

NIO Inc. (NYSE:NIO – Get Free Report)’s share price dropped 5.2% during trading on Tuesday. The stock traded as low as $3.38 and last traded at $3.4050. Approximately 58,628,658 shares changed hands during trading, an increase of 56% from the average session volume of 37,477,387 shares. The stock had previously closed at $3.59.

More NIO News

Here are the key news stories impacting NIO this week:

Positive Sentiment: Geely partnership expands NIO’s battery-swapping ecosystem. A Geely subsidiary will acquire a 30% stake in NIO Power using its Yiyi Power business and RMB640 million in cash, valuing NIO Power at approximately RMB16 billion. The companies also plan to make battery-swapping technology compatible with additional consumer and commercial vehicle models, potentially increasing utilization of NIO’s infrastructure. NIO Announces Definitive Agreements for Strategic Transaction With Geely
Positive Sentiment: The transaction could support infrastructure funding and industry adoption. NIO has invested more than RMB20 billion in its power network, which included 4,126 battery-swap stations and 5,307 charging stations in China as of September 27. Geely’s participation may validate NIO’s technology and reduce duplication among competing networks. NIO Inks Battery-Swapping Deal With Geely
Neutral Sentiment: Recent operating results show scale but not a full return to profitability. NIO reported 107,658 second-quarter deliveries, RMB32.1 billion in revenue, an 18.5% vehicle margin and a GAAP net loss of RMB528 million. August deliveries rose 14.5% year over year to 35,836, but that growth slowed sharply from July’s 71% increase, raising questions about delivery momentum in China’s competitive EV market. NIO Slides as Investors Weigh Battery-Swap Deal Against Demand Concerns
Negative Sentiment: Investors are concerned about dilution and execution risk. Geely’s 30% ownership reduces NIO’s stake in a key business, while its interest could rise to 34% through an additional investment. The stake may also be adjusted based on operational performance, keeping attention on whether NIO Power can generate sufficient returns.
Negative Sentiment: Demand and financial concerns continue to overshadow the strategic deal. NIO remains loss-making, with a negative net margin and elevated leverage, while intensifying competition and slower delivery growth could limit the near-term benefit of the partnership. The stock has consequently moved lower and reached a new 52-week low. NIO Stock Hits 52-Week Low

Wall Street Analyst Weigh In

Several research analysts recently commented on NIO shares. Citigroup reiterated a “buy” rating on shares of NIO in a report on Tuesday, September 1st. Weiss Ratings reissued a “sell (e+)” rating on shares of NIO in a report on Wednesday, July 29th. Royal Bank Of Canada lowered NIO to a “sector perform” rating in a research note on Thursday, September 3rd. The Goldman Sachs Group reiterated a “buy” rating and set a $6.10 price target on shares of NIO in a research note on Friday, September 4th. Finally, Sanford C. Bernstein dropped their price objective on shares of NIO from $6.00 to $5.00 and set a “market perform” rating for the company in a research note on Wednesday, September 2nd. Six investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $5.87.

Check Out Our Latest Report on NIO

NIO Stock Performance

The stock’s 50-day simple moving average is $4.24 and its 200 day simple moving average is $5.16. The company has a quick ratio of 0.89, a current ratio of 1.02 and a debt-to-equity ratio of 2.11. The stock has a market capitalization of $8.46 billion, a price-to-earnings ratio of -12.61 and a beta of 0.92.

NIO (NYSE:NIO – Get Free Report) last issued its quarterly earnings results on Saturday, August 15th. The company reported $0.00 earnings per share for the quarter. The business had revenue of $4.73 billion during the quarter. NIO had a negative net margin of 3.95% and a negative return on equity of 111.37%. Analysts expect that NIO Inc. will post -0.13 earnings per share for the current fiscal year.

Hedge Funds Weigh In On NIO

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NIO. Renaissance Technologies LLC boosted its stake in NIO by 70.2% during the 1st quarter. Renaissance Technologies LLC now owns 14,452,131 shares of the company’s stock worth $87,146,000 after acquiring an additional 5,962,731 shares during the last quarter. Bank of America Corp DE raised its holdings in NIO by 99.0% in the first quarter. Bank of America Corp DE now owns 14,228,916 shares of the company’s stock worth $85,800,000 after purchasing an additional 7,079,903 shares during the period. SG Americas Securities LLC raised its holdings in NIO by 67.2% in the first quarter. SG Americas Securities LLC now owns 5,027,161 shares of the company’s stock worth $30,314,000 after purchasing an additional 2,020,754 shares during the period. Assenagon Asset Management S.A. bought a new position in shares of NIO during the second quarter worth $19,008,000. Finally, Hsbc Holdings PLC boosted its position in shares of NIO by 651.5% during the second quarter. Hsbc Holdings PLC now owns 1,600,640 shares of the company’s stock worth $8,051,000 after purchasing an additional 1,387,656 shares in the last quarter. Institutional investors own 48.55% of the company’s stock.

About NIO

(Get Free Report)

NIO Inc is a Chinese smart electric vehicle company founded in 2014 and headquartered in Shanghai. The company designs, develops and sells battery-powered passenger vehicles, with a focus on combining electric mobility with digital connectivity, autonomous-driving capabilities and premium user services.