NIO achieved its first quarterly profit in the final quarter of 2025, marking a significant milestone for the Chinese electric vehicle maker. The Shanghai-based company reported net income of 122.4 million yuan ($17.7 million), reversing a year-earlier loss of 7.13 billion yuan. Revenue surged 76% to 34.65 billion yuan, driven by record sales and improved margins.

NIO joins a select group of profitable EV manufacturers in China's competitive market. The company's turnaround reflects growing demand for premium electric vehicles and successful cost management strategies. NIO has positioned itself among China's top three emerging EV brands alongside XPeng and Li Auto, competing in the world's largest auto market.

The profit milestone comes as NIO expands its product lineup and enhances battery-swapping technology. Strong sales performance in the fourth quarter suggests the company's investments in research and development are paying off. This profitability milestone could strengthen NIO's position as it faces increasing competition from both domestic rivals and global automakers entering the Chinese market.