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Is NIO Stock a Buy After Impressive Q1 Delivery Numbers?
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Key Takeaways
NIO delivered 83,465 vehicles in Q1 2026, up 98.3% YoY and above its guided range.
NIO's new models, multi-brand lineup, and ES8 momentum are driving strong demand growth.
NIO's margins are improving, with profitability emerging and expansion plans targeting 40 markets.
China’s electric vehicle (EV) company NIO Inc. (NIO - Free Report) delivered 83,465 vehicles in the first quarter of 2026, representing a 98.3% increase year over year and exceeding its own guided range of 80,000-83,000 units. First-quarter deliveries consisted of 58,543 units from the NIO brand, 13,339 units from the ONVO brand and 11,583 from Firefly. Cumulative deliveries as of March 31, 2026 crossed 1 million units.
Meanwhile, growth at close peers XPeng (XPEV - Free Report) and Li Auto (LI - Free Report) was less impressive. XPeng’s first-quarter deliveries came in at 62,682 units, marking a decline from 94,008 units in the year-ago period. In contrast, Li Auto reported 95,142 deliveries, up modestly from 92,864 vehicles a year earlier.
While NIO’s delivery growth stands out, let’s look beyond the headline numbers to assess whether the stock is truly a buy at current levels.
The company’s expanding and refreshed product lineup is a key catalyst for NIO. The all-new ES8 has emerged as a standout performer, hitting 80,000 deliveries in just 181 days and leading the premium SUV segment priced above 400,000 yuan for three straight months. The pipeline remains robust. NIO is set to launch the ES9 soon. It also plans to introduce a five-seat variant of the ES8 in July. These additions are expected to further strengthen its position.
Meanwhile, ONVO is set to launch two models in the 200,000 yuan segment to revive demand, while Firefly is now showing traction with a sharp sequential jump in deliveries last month. This multi-brand strategy allows NIO to target a wider customer base across price points.
NIO’s Margins Improve, Profitability in Sight
Vehicle margins are trending in the right direction, rising to 18.1% in the final quarter of 2025 from 13.1% in the corresponding quarter of 2024. NIO expects to sustain similar levels in the first quarter of 2026 and is targeting further improvement as new models scale up.
NIO targets to achieve a vehicle gross margin of 20-25% for the NIO brand, above 15% for the ONVO brand and above 10% for the FIREFLY brand.
Operational changes, including a decentralized core business unit structure, are helping improve cost discipline and return on investment— a shift from pure growth to more balanced execution.
The company is making meaningful progress on profitability. It reported its first-ever quarterly profit in the fourth quarter of 2025, marking a major turnaround from losses a year ago. This was driven by higher volumes, better cost control and supply chain optimization. Importantly, NIO is targeting full-year non-GAAP operating profit this year.
Battery Swap: A Differentiation Edge
One of NIO’s biggest competitive advantages remains its battery swap technology under its Battery-as-a-Service model.
With more than 3,800 swap stations and over 28,000 charging points, NIO offers a level of convenience that a few rivals can match. This could become a long-term moat if scaled efficiently. Users can replace a depleted battery in minutes instead of waiting for a charge, addressing one of the biggest pain points in EV adoption.
Global Expansion Gaining Pace
NIO is accelerating its international footprint. By the end of 2025, the company was present in 20 markets, with plans to expand to 40 countries and regions by the end of 2026.
Recent moves include opening its first store in the Americas (Costa Rica) and expanding into multiple European markets through partnerships. Notably, Firefly is being positioned as the lead brand for global expansion, signaling a strategic shift toward more accessible offerings overseas.
NIO: Price, Valuation & Estimates
Year to date, shares of NIO have risen over 23%, outperforming the industry.
Image Source: Zacks Investment Research
From a valuation perspective, NIO currently trades at a forward price-to-sales ratio of 0.74, below Li Auto and XPeng.
NIO Looks Undervalued Relative to LI & XPEV
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NIO’s 2026 and 2027 sales implies year-over-year growth of 50% and 19%, respectively. The consensus mark for the bottom line for the current and next year implies 70% and 73% improvement, respectively.
NIO is Worth Buying Now
NIO has evolved into a more disciplined, margin-focused player with multiple growth levers in place. With a targeted 40-50% delivery growth in 2026, backed by new launches, the company is entering a stronger execution phase. Rising margins, early signs of profitability, and its battery swap edge further strengthen the case. If NIO sustains demand while scaling profitably, the stock offers meaningful upside from current levels.
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Image: Bigstock
Is NIO Stock a Buy After Impressive Q1 Delivery Numbers?
Key Takeaways
China’s electric vehicle (EV) company NIO Inc. (NIO - Free Report) delivered 83,465 vehicles in the first quarter of 2026, representing a 98.3% increase year over year and exceeding its own guided range of 80,000-83,000 units. First-quarter deliveries consisted of 58,543 units from the NIO brand, 13,339 units from the ONVO brand and 11,583 from Firefly. Cumulative deliveries as of March 31, 2026 crossed 1 million units.
Meanwhile, growth at close peers XPeng (XPEV - Free Report) and Li Auto (LI - Free Report) was less impressive. XPeng’s first-quarter deliveries came in at 62,682 units, marking a decline from 94,008 units in the year-ago period. In contrast, Li Auto reported 95,142 deliveries, up modestly from 92,864 vehicles a year earlier.
While NIO’s delivery growth stands out, let’s look beyond the headline numbers to assess whether the stock is truly a buy at current levels.
NIO Inc. Price, Consensus and EPS Surprise
NIO Inc. price-consensus-eps-surprise-chart | NIO Inc. Quote
Product Momentum Driving Demand
The company’s expanding and refreshed product lineup is a key catalyst for NIO. The all-new ES8 has emerged as a standout performer, hitting 80,000 deliveries in just 181 days and leading the premium SUV segment priced above 400,000 yuan for three straight months. The pipeline remains robust. NIO is set to launch the ES9 soon. It also plans to introduce a five-seat variant of the ES8 in July. These additions are expected to further strengthen its position.
Meanwhile, ONVO is set to launch two models in the 200,000 yuan segment to revive demand, while Firefly is now showing traction with a sharp sequential jump in deliveries last month. This multi-brand strategy allows NIO to target a wider customer base across price points.
NIO’s Margins Improve, Profitability in Sight
Vehicle margins are trending in the right direction, rising to 18.1% in the final quarter of 2025 from 13.1% in the corresponding quarter of 2024. NIO expects to sustain similar levels in the first quarter of 2026 and is targeting further improvement as new models scale up.
NIO targets to achieve a vehicle gross margin of 20-25% for the NIO brand, above 15% for the ONVO brand and above 10% for the FIREFLY brand.
Operational changes, including a decentralized core business unit structure, are helping improve cost discipline and return on investment— a shift from pure growth to more balanced execution.
The company is making meaningful progress on profitability. It reported its first-ever quarterly profit in the fourth quarter of 2025, marking a major turnaround from losses a year ago. This was driven by higher volumes, better cost control and supply chain optimization. Importantly, NIO is targeting full-year non-GAAP operating profit this year.
Battery Swap: A Differentiation Edge
One of NIO’s biggest competitive advantages remains its battery swap technology under its Battery-as-a-Service model.
With more than 3,800 swap stations and over 28,000 charging points, NIO offers a level of convenience that a few rivals can match. This could become a long-term moat if scaled efficiently. Users can replace a depleted battery in minutes instead of waiting for a charge, addressing one of the biggest pain points in EV adoption.
Global Expansion Gaining Pace
NIO is accelerating its international footprint. By the end of 2025, the company was present in 20 markets, with plans to expand to 40 countries and regions by the end of 2026.
Recent moves include opening its first store in the Americas (Costa Rica) and expanding into multiple European markets through partnerships. Notably, Firefly is being positioned as the lead brand for global expansion, signaling a strategic shift toward more accessible offerings overseas.
NIO: Price, Valuation & Estimates
Year to date, shares of NIO have risen over 23%, outperforming the industry.
From a valuation perspective, NIO currently trades at a forward price-to-sales ratio of 0.74, below Li Auto and XPeng.
NIO Looks Undervalued Relative to LI & XPEV
The Zacks Consensus Estimate for NIO’s 2026 and 2027 sales implies year-over-year growth of 50% and 19%, respectively. The consensus mark for the bottom line for the current and next year implies 70% and 73% improvement, respectively.
NIO is Worth Buying Now
NIO has evolved into a more disciplined, margin-focused player with multiple growth levers in place. With a targeted 40-50% delivery growth in 2026, backed by new launches, the company is entering a stronger execution phase. Rising margins, early signs of profitability, and its battery swap edge further strengthen the case. If NIO sustains demand while scaling profitably, the stock offers meaningful upside from current levels.
NIO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.