NIO reported a narrower quarterly loss driven by robust EV deliveries and premium positioning. The Shanghai-based company's second-quarter net loss narrowed to 721.6 million yuan from 5.14 billion yuan a year earlier. Revenue climbed 69% to 32.14 billion yuan as vehicle deliveries increased nearly 50% year-over-year, though sales volume fell short of guidance.

Both top and bottom lines missed market expectations. NIO's shares fell 6.4% in Hong Kong after the report. The company guided for a sequential increase in quarterly deliveries, targeting 108,000 to 111,000 vehicles this quarter.

NIO also forecast strong third-quarter revenue between 33.29 billion yuan and 34.05 billion yuan, a more than 50% increase year-over-year. Despite back-to-back monthly sales declines in July and August, the new flagship ES9 sport-utility vehicle has enjoyed strong sales. NIO Chief Financial Officer Stanley Yu Qu highlighted healthy gross and vehicle margins of 18.4% and 18.5% respectively, supported by higher-margin models and ongoing cost structure optimization.

The company is expanding internationally through a more asset-light approach, relying on local distributors across Europe, Asia, and Latin America, though overseas ambitions have yet to translate into meaningful sales.