NIO Stock Rallies as EV Maker Delivers Record Vehicles in October

TLDR

• NIO delivered 40,397 vehicles in October 2025, the first time exceeding 40,000 monthly units
• Shares climbed 4.6% on Monday following the delivery announcement
• October deliveries surged 92.6% year-over-year and 16% month-over-month
• New sub-brands Onvo and Firefly drove growth in mid-range and compact segments
• Stock up 59.3% year-to-date despite trading above estimated fair value

NIO shares rose 4.6% on Monday after the electric vehicle manufacturer announced record October deliveries. The stock reached HK$57.1 in Hong Kong trading.

NIO Inc., NIO

The company delivered 40,397 vehicles last month, marking a 92.6% jump from October 2024. This represents the first time NIO has surpassed 40,000 monthly deliveries.

Deliveries also increased 16% compared to September 2025. NIO credited strong demand across its vehicle lineup for the performance.

Sub-Brand Strategy Pays Off

The company’s new sub-brands contributed to the record month. Onvo targets the mid-range segment while Firefly focuses on compact vehicles.

This multi-brand approach allows NIO to compete across different price points. The strategy expands the company’s market reach beyond its premium offerings.

NIO’s stock gained 5.1% over the past week. However, shares remain down 5.8% for the month.

Year-to-date performance shows stronger results. The stock has climbed 59.3% in 2024.

Competitive Landscape

XPeng also reported strong October numbers. The rival Chinese EV maker delivered 42,013 vehicles, up 76% year-over-year.

XPeng shares jumped 4.8% to HK$91.4 on Monday. The company attributed growth to its X9 MPV and G6 SUV models.

Both manufacturers are expanding production and vehicle lineups. Competition in China’s electric vehicle market continues to intensify.

Valuation Analysis

Despite delivery success, valuation metrics suggest caution. A discounted cash flow model estimates NIO’s fair value at $6.18 per share.

This implies the stock trades approximately 17.2% above intrinsic value. NIO currently operates with negative free cash flow of CN¥20.2 billion.

Analysts forecast a turnaround by 2029. Free cash flow is expected to reach CN¥8.26 billion within four years.

The price-to-sales ratio stands at 1.84x. This compares to the auto industry average of 1.25x and peer group average of 1.89x.

NIO’s October 2025 deliveries of 40,397 vehicles represent a 92.6% increase from the prior year and the first time monthly deliveries exceeded 40,000 units, with new sub-brands Onvo and Firefly contributing to the growth.

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