---
title: "NIO's Recovery Looks Like a Changing Story. That Keeps Me Bullish"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286299748.md"
description: "NIO Inc. has shown significant recovery in its stock over the past year, with a focus shifting from delivery growth to profitability. The company reported its first quarterly non-GAAP operating profit in Q4 25 and strong volumes in Q1 26, driven by the All-New ES8 SUV, which achieved gross margins of nearly 25%. With the upcoming ES9 launch, NIO is on track for adjusted operating breakeven in 2026, potentially leading to positive GAAP earnings sooner than expected. The analyst maintains a Buy rating on NIO shares, citing substantial upside potential."
datetime: "2026-05-13T17:42:54.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286299748.md)
  - [en](https://longbridge.com/en/news/286299748.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286299748.md)
---

# NIO's Recovery Looks Like a Changing Story. That Keeps Me Bullish

Shares of Chinese electric vehicle (EV) maker NIO Inc. (NIO) have recovered meaningfully over the past 12 months, but I believe the market may still be overlooking the company's progress toward profitability.

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After reporting its first-ever quarterly non-GAAP adjusted operating profit in Q4 25 and delivering stronger-than-expected volumes in Q1 26, NIO appears to have reached an important inflection point. The company is evolving from a story driven primarily by delivery growth into one increasingly centered on margins, product mix, and operating leverage.

The main catalyst behind this shift has been the All-New ES8, a premium SUV that, according to management, generated vehicle gross margins close to 25% in Q4 25. With the ES9 set to launch and potentially replicating this same formula, I believe NIO has a credible path to reaching adjusted operating breakeven in 2026. If that proves to be the case, the company could also report positive GAAP earnings sooner than the consensus currently expects. That is exactly why I continue to see meaningful upside and maintain my Buy rating on NIO shares.

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## Related News & Research

- [Nio to report Q1 earnings on May 21 after deliveries beat guidance](https://longbridge.com/en/news/285917807.md)
- [Nio ES8 tops China's large SUV retail sales for fifth straight month](https://longbridge.com/en/news/286204667.md)
- [Nio Onvo to start pre-sales of updated L60 SUV in late May, official launch set for June](https://longbridge.com/en/news/285854309.md)
- [Nio Onvo targets over 3,300 available swap stations by year-end](https://longbridge.com/en/news/285870766.md)
- [NIO Inc. Provides April 2026 Delivery Update | NIO Stock News](https://longbridge.com/en/news/284863934.md)