NIO (NYSE:NIO) Shares Gap Up – Should You Buy?

NIO Inc. (NYSE:NIO) gapped up before the market opened on Thursday . The stock had previously closed at $4.44, but opened at $4.78. NIO shares last traded at $4.6350, with a volume of 47,089,087 shares.

NIO News Roundup

Here are the key news stories impacting NIO this week:

• Positive Sentiment: NIO issued a profit alert saying it expects an adjusted operating profit (non‑GAAP) of approximately RMB700M–RMB1,200M for Q4 2025, driven by higher sales, a favorable product mix and cost cuts — a clear catalyst for the rally. NIO Profit Alert (GlobeNewswire)
• Positive Sentiment: Multiple media outlets amplified the profit news (coverage includes Benzinga and Blockonomi), increasing visibility and momentum as traders and momentum funds chased the headline. What’s Going On With Nio Stock? (Benzinga)
• Positive Sentiment: Unusually large options activity: ~238,070 call options traded (≈+52% vs. typical), indicating short‑term bullish bets and speculative positioning that can amplify upside. (internal trade data)
• Neutral Sentiment: NIO also disclosed an expected GAAP operating profit range (approx. RMB200M–RMB700M) and emphasized the figures are preliminary and unaudited — useful directional info but not final results. NIO Profit Alert (GlobeNewswire)
• Neutral Sentiment: Institutional activity and analyst coverage have ramped up; several firms recently added positions or updated targets (median six‑month target shown around $7), which supports longer‑term investor interest. QuiverQuant summary
• Negative Sentiment: Caveats: the profit alert is based on preliminary, unaudited numbers and uses non‑GAAP figures (excludes share‑based comp). Sustainability of profitability is unproven — NIO still has a history of large net losses and a relatively high debt/equity level, so upside could reverse on final audited results or if margins slip. Can Nio Stock Beat the Market? (The Motley Fool)
• Negative Sentiment: Market and sector risks remain — weakening EV subsidies and stiff competition in China could pressure volumes and margins if momentum fades. Recent volatility shows the stock can swing on sentiment shifts. Zacks note on recent volatility

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on NIO. The Goldman Sachs Group reiterated a “neutral” rating and issued a $7.00 price objective on shares of NIO in a research note on Thursday, October 30th. Macquarie Infrastructure upgraded shares of NIO from a “neutral” rating to an “outperform” rating and set a $6.10 target price on the stock in a research note on Thursday, January 15th. Citigroup decreased their price target on shares of NIO from $8.60 to $6.90 and set a “buy” rating for the company in a research note on Wednesday, November 26th. Barclays upped their price objective on NIO from $3.00 to $4.00 and gave the company an “underweight” rating in a research note on Friday, November 28th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of NIO in a research report on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, NIO currently has an average rating of “Hold” and an average target price of $6.83.

NIO Trading Up 7.4%

The firm has a market capitalization of $10.54 billion, a PE ratio of -3.48 and a beta of 1.10. The company has a debt-to-equity ratio of 2.36, a quick ratio of 0.83 and a current ratio of 0.94. The stock’s 50-day simple moving average is $4.87 and its 200-day simple moving average is $5.76.

Institutional Investors Weigh In On NIO

Hedge funds have recently added to or reduced their stakes in the stock. Farther Finance Advisors LLC grew its position in NIO by 148.3% during the 3rd quarter. Farther Finance Advisors LLC now owns 4,817 shares of the company’s stock valued at $37,000 after purchasing an additional 2,877 shares during the last quarter. Atlantic Union Bankshares Corp grew its holdings in shares of NIO by 98.3% during the fourth quarter. Atlantic Union Bankshares Corp now owns 5,950 shares of the company’s stock valued at $30,000 after buying an additional 2,950 shares during the last quarter. Allworth Financial LP increased its position in shares of NIO by 183.5% during the third quarter. Allworth Financial LP now owns 6,596 shares of the company’s stock valued at $50,000 after acquiring an additional 4,269 shares in the last quarter. Aries Wealth Management purchased a new position in NIO in the 3rd quarter worth approximately $76,000. Finally, Concurrent Investment Advisors LLC bought a new position in NIO in the 3rd quarter valued at approximately $77,000. 48.55% of the stock is owned by institutional investors.

About NIO

NIO Inc is a pioneer in the premium electric vehicle (EV) segment, dedicated to the design, development and manufacture of smart, high-performance EVs. Established in November 2014 and headquartered in Shanghai, China, the company focuses on integrating cutting-edge electric propulsion, advanced connectivity and autonomous driving technologies into its automotive platforms. NIO’s vision centers on creating a holistic user experience that extends beyond the vehicle itself, encompassing energy services and digital solutions.

The company’s product lineup includes flagship SUVs and sedans such as the ES8, ES6, EC6, ET7 and ET5, each engineered to deliver strong performance, long range and a suite of intelligent driver-assistance features.