Stock Market Today: NIO Jumps as Glimmers of Profitability Emerge

Nio (NYSE: NIO) climbed 3.1% on Tuesday to close at $6.58, rallying on the back of second-quarter earnings that demonstrated its strongest showing since Q4 2023. The EV maker posted a smaller-than-expected $567 million loss and improved its margin to 10%, suggesting a potential turnaround. Heavy trading volume of 119.6 million shares (nearly double its average) underscored heightened investor interest.

The broader markets dipped, with the S&P 500 (SNPINDEX: ^GSPC) sliding 0.7% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) falling 0.8%.

NIO peers, Li Auto (NASDAQ: LI) and BYD Company (OTC: BYDDY), also advanced on Tuesday. Li Auto rose 4.5% to $24.40, while BYD climbed 2.9% to $14.04, as both stocks benefited from continued excitement around Chinese EV demand.

The optimism stems from NIO's substantial 26% year-over-year jump in Q2 deliveries and a 55% rise in August units. Coupled with margin improvement and tighter cost controls, these gains suggest the company may reach profitability as early as Q4, positioning it as a standout in an otherwise challenging EV landscape.

Market data sourced from Google Finance and Yahoo! Finance on Tuesday, Sept. 2, 2025.

Daily Stock News has no position in any of the stocks mentioned. This article was generated with GPT-4o, OpenAI's large-scale language generation model and has been reviewed by The Motley Fool's AI quality control systems.The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.