NIO reported Q1 2026 results with revenue of $3.70 billion and 83,465 deliveries, up 98.3% year over year. Gross margin rose to 19.0% from 7.6% a year earlier, and vehicle margin reached 18.8% for a fourth straight sequential improvement. Operating costs improved, with R&D down 40.7% and SG&A down 20.5% year over year. GAAP results remained negative, with EPS of negative $0.03 and a GAAP net loss of RMB 332.1 million, while non-GAAP adjusted operating profit was RMB 66.8 million. Battery swap infrastructure supported network effects, including over 1 million swap services during a holiday period, and plans for 1,000 new swap stations per year through 2028.
"Q1 revenue hit $3.70 billion on 83,465 deliveries, up 98.3% year over year. The headline number is the margin profile: gross margin of 19.0% versus 7.6% a year ago, with vehicle margin of 18.8% marking a fourth consecutive sequential improvement. Operating discipline showed up too, with R&D down 40.7% and SG&A down 20.5% year over year."
"GAAP profitability remains out of reach. EPS came in at negative $0.03, a GAAP net loss of RMB 332.1 million. But non-GAAP adjusted operating profit of RMB 66.8 million (US$ 9.7 million) shows the unit economics finally working."
"In a Chinese EV price war that has crushed margins industry-wide, NIO has one structural asset rivals cannot match overnight. Its 3,851 battery swap stations and over 5,000 charging stations, with more than 86% of its charging power supplied to non-NIO vehicles, generate genuine network effects."
"During the May Day 2026 holiday from April 30 to May 6, NIO completed over 1 million battery swap services. Management plans 1,000 new swap stations per year through 2028, targeting 4,700 to 4,800 stations by end of 2026, with 5th-generation stations rolling out in July and August 2026 to support Onvo and Firefly."
Read at 24/7 Wall St.
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