Nio Hong Kong shares plunge 10% as Onvo deliveries slump 46%

Nio's Hong Kong-listed shares fell more than 10 percent to a 13-month low after August deliveries missed expectations, with the Onvo brand's 46 percent slump overshadowing record growth at the namesake brand.

Nio's Hong Kong shares fell as much as 11.3 percent to HK$29.44 on Tuesday after August deliveries of 35,836 vehicles missed expectations, hours before the company was due to report second-quarter results.

Founder and chief executive William Li has held to a target of 40 percent to 50 percent delivery growth for 2026, reiterating it at the China Auto Chongqing Summit in June even as he warned China's overall auto market could contract 15 percent to 20 percent this year.

The delivery breakdown shows a sharp divergence between brands. The Nio brand delivered 21,174 vehicles, up 101.18 percent year-over-year and 5.83 percent from July, lifting its share of group volume to 59.09 percent from 33.62 percent a year earlier. Onvo delivered 8,810, down 46.39 percent year-over-year and 13.24 percent from July, its third consecutive monthly decline, cutting its contribution to 24.58 percent from 52.50 percent. Firefly delivered 5,852, up 34.65 percent year-over-year.

The share-price decline suggests investors are focusing on Onvo's sales trajectory and the execution of Nio's multi-brand strategy. Nio is scheduled to report second-quarter results before the US market opens, with deliveries of 107,658 in the quarter, up 49.4 percent year-over-year but below its guidance range of 110,000 to 115,000.

Onvo's Weakness Drives the Miss

The stock traded at HK$30.24 at 2:37 a.m. US Eastern Time, down 8.9 percent from Monday's close of HK$33.18, after reaching a session low of HK$29.44, its lowest since July 2025. The Hong Kong listing peaked at HK$54.95 in April, putting Tuesday's level about 45 percent below that high. The New York-listed ADRs set their own 52-week low Monday afternoon, trading as low as $4.30 against a previous close of $4.37.

August was Nio's fourth consecutive month above 35,000 vehicles but its lowest monthly figure since April, and 25.6 percent below the record 48,135 delivered in December 2025. Year-to-date deliveries reached 262,893, up 57.92 percent, with cumulative deliveries of 1,260,485 as of August 31.

The Target Arithmetic Tightens

On 2025 deliveries of 326,028 vehicles, Li's 40 percent to 50 percent growth target implies a full-year range of roughly 456,000 to 489,000 units. The 262,893 delivered through August is 57.7 percent of the lower figure and 53.8 percent of the upper one. Reaching the bottom of the range requires 48,277 vehicles a month from September through December, and the top requires 56,527 — a floor that sits above Nio's best month on record.

Nio posted an adjusted operating profit of 66.8 million yuan in the first quarter, a second consecutive positive quarter on that measure, with a gross margin of 19.0 percent, the highest in four years. Management guided second-quarter revenue to between 32.78 billion and 34.44 billion yuan, and holds a full-year vehicle margin target of 17 percent to 18 percent against 14.6 percent in 2025.

The second-quarter report, due before the US market opens, will test whether Nio achieved non-GAAP profitability and management's latest assessment of its profitability targets for the third quarter and full year. The shift in brand mix in August may make the quality of growth a focus on the earnings call.

This article is for informational purposes only and does not constitute investment advice.