Nio Stock Surges On Friday - Here's Why

Shares of Nio Inc (NYSE:NIO) are trading higher in Friday's premarket session. This follows a fourth-quarter earnings report and a wave of positive Wall Street sentiment.

Analysts Pivot to Bullish Outlook

Nomura upgraded the stock to Buy from Neutral following the results. The firm cited improving operational momentum as a primary driver.

Analysts at Macquarie also raised their price forecast to $6.50. They pointed to improved vehicle margins and lower operating cash flow.

Morgan Stanley remains Overweight with a $7.00 price target. This reflects confidence in Nio's 40% to 50% delivery growth forecast.

HSBC has upgraded NIO's stock rating to Buy and raised the price forecast to $6.80.

Milestones in Profitability and Production

Nio reported fourth quarter revenue of $4.95 billion, up 75.9% year-over-year. Adjusted earnings reached 0.29 yuan (4 cents) per ADS. This beat the analyst consensus of a 5-cent loss.

This marked Nio's first quarterly profit. The company delivered 124,807 units in the quarter. This represents a 71.7% surge compared to the previous year.

Q1 Guidance Signals Massive Growth

Management expects first quarter of 2026 deliveries between 80,000 and 83,000 units. This implies growth of up to 97% year-over-year.

Technical Analysis

NIO is trading 12.3% above its 20-day Simple Moving Average (SMA) and 4.8% above its 100-day SMA, showing improving short-term trend strength while the intermediate trend firms up.

Shares are up 17.34% over the past 12 months and are currently positioned closer to their 52-week highs than lows within the $3.02 to $8.02 range.

• Key Resistance: $6.00
• Key Support: $4.50

NIO Stock Price Activity: Nio shares were up 3.60% at $5.75 during premarket trading on Friday, according to Benzinga Pro data.

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