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NIO Inc. (NYSE:NIO) reported its second-quarter 2026 results on September 1, though it reflected the same tension that has been building around the company for months: operational improvement in China colliding with a European business that was continuously unraveling.
NIO Inc. (NYSE:NIO) shipped 107,658 vehicles in the second quarter of 2026, an increase of 49.4% year-over-year and 29.0% quarter-over-quarter across the NIO, ONVO, and Firefly brands. Revenue increased 69.1% year-over-year to 32.14 billion yuan, or around $4.74 billion, owing to better deliveries and an improved product mix, albeit revenue was nearly 2% below the company's previous projection and fell short of Wall Street's $4.95 billion consensus. Shares fell as much as 4.4%, trading at approximately $4.05-4.09, as investors focused on the revenue miss instead of the improved bottom line.
Vehicle gross margin was 18.5%, up from 10.3% the previous year and 18.8% in the first quarter, while overall gross margin increased to 18.4%, up from 10% in the second quarter of last year. Net loss fell to RMB0.5 billion, an 89.4% improvement year-over-year, though it increased 59% from the previous quarter, and adjusted net profit came in at RMB26.1 million, excluding share-based compensation. Management identified the ES8 and ES9 flagship SUVs as important drivers of the margin profile, with both generating vehicle margins of more than 20%, and underlined strong demand, including delivery wait periods of more than three months on certain ES9 variants.
None of this quarter's progress changes the picture in Europe, where the data remains stark. NIO registered just three vehicles in Germany in July, down 93.6% year-over-year, bringing its first-seven-month total to 18, down 89.3%. In the Netherlands, NIO-brand registrations fell 87.9% to eight vehicles during the first seven months of 2026. Germany and the Netherlands, two of NIO's oldest and most important European markets, recorded just 26 NIO-brand registrations combined in the first seven months of 2026. Norway has fared relatively well, with 211 combined NIO Inc. (NYSE:NIO) and Firefly registrations up until August 23, but even this bright spot couldn't make up for the extent of the decline elsewhere.