NIO Inc – ADR (NYSE:NIO) stock has pulled back and moved into a technical correction after falling by 12.5% from its highest point in April this year. This retreat could be part of the formation of the cup-and-handle pattern, pointing to a rebound as it publishes its results on Thursday this week.



<h2>Nio Stock In Focus Ahead of Q1 Earnings</h2>



Nio, a top Chinese Tesla (NASDAQ:TSLA) rival, will be in the spotlight on Thursday as it releases its first-quarter earnings report. 



These results come at a time when the company has become one of the fastest players in the electric vehicle industry. While its recent April deliveries report missed estimates, they demonstrated that its vehicles were seeing strong growth. 



Nio delivered 29,356 vehicles in April, up by 22.8% from the same period last month. Its first-quarter deliveries rose by 98.3% to 83,465. In contrast, Tesla delivered 365,000 vehicles in the first quarter, missing the estimated range of between 365,000 and 381,000. 



BYD, the biggest Chinese company, delivered 700,463 vehicles, down by 30% from the same period last year. Other Chinese EV companies experienced slow growth during the quarter.



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Therefore, estimates are that the upcoming results will show that Nio's revenue jumped by 109% in the first quarter to CNY 25.22 billion or $3.55 billion.



Traders will watch these results closely because of its focus on profitability. Its previous results showed that the company made its first quarterly profit ever. The management guided towards more profits in the coming quarters.



These results will also provide more hints on the recently launched ES9, which is the new upgrade to the popular ES8 vehicle. Analysts predict that the vehicle will sell between 3,000 and 5,000 vehicles per month, a substantial amount for a vehicle selling for between $70,000 and $85,000. It will start selling in June. 



<h2>Nio Shares Has Formed A Golden Cross And A Cup &amp; Handle Patterns</h2>



Technicals suggest that the Nio share price may be ripe for a strong bullish breakout in the near term. It has remained consistently above the 50-day and 200-day moving averages, which formed a golden cross pattern in March this year.



<figure class="wp-block-image size-large"><img width="1024" height="567" src="https://imageproxy.pbkrs.com/https://editorial-assets.benzinga.com/wp-content/uploads/2026/05/17163132/Nio-stock-1024x567.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="nio stock" original-src="https://imageproxy.pbkrs.com/https://editorial-assets.benzinga.com/wp-content/uploads/2026/05/17163132/Nio-stock-1024x567.png"/><figcaption>Nio stock chart | Source: TradingView</figcaption></figure>







The stock has formed a cup-and-handle pattern whose upper side is at $7. The recent retreat was part of the handle section. Therefore, the most likely outlook is bullish, with the initial target being the cup's upper side at $7. 



A move above that price will point to further gains towards the 2025 high of $8.01. This target is slightly above the average Wall Street forecast of $7.50.



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Image: Shutterstock

Nio stock is poised for a bullish breakout as it prepares to release its Q1 earnings on Thursday. After a 12.5% pullback, the stock has formed a cup-and-handle pattern, suggesting a potential rebound. Analysts expect revenue to rise by 109% to CNY 25.22 billion. Nio's recent vehicle deliveries showed strong growth, and the stock has maintained a golden cross pattern, indicating a bullish outlook with a target price of $7.

- NIO Inc – ADR (NYSE:NIO) stock has entered a technical correction after a 12.5% decline from its April peak, potentially forming a cup-and-handle pattern ahead of its first-quarter earnings report.  
- Nio's April deliveries of 29,356 vehicles showed a 22.8% increase from the previous month, contributing to a 98.3% rise in first-quarter deliveries to 83,465, while Tesla and BYD experienced mixed results.  
- The upcoming earnings are expected to reveal a 109% revenue jump to CNY 25.22 billion, and analysts predict strong sales for the new ES9 model, indicating a bullish trend for NIO's stock price.

Nio Stock Forms Rare Bullish Pattern As Earnings Loom