Nio founder and CEO William Li believes the market is not fully recognizing the value of the company’s AI and energy operations. Speaking at a media briefing following Nio’s second-quarter results, Li highlighted the company’s progress in technology, services, and battery swap infrastructure, despite a sharp decline in its stock price since 2021.
Nio’s Financial Performance and Market Position
Nio released its second-quarter results before the US market opened on September 1, 2026. The company reported a 69.1% year-on-year increase in revenue, reaching $4.8B (~AUD 6.7B). Adjusted profit from operations stood at $30.7M (~AUD 42.9M), about 3.1 times the first-quarter level, marking the third consecutive quarter of positive adjusted operating profit.
Despite these gains, Nio’s GAAP net loss widened 59% sequentially to $78.4M (~AUD 109.5M). The company’s US-traded ADRs closed at $3.86 on September 3, 2026, about 94% below the record high of $66.99 reached in January 2021. Li noted that while Nio’s market capitalization was much higher in 2021, the company is now healthier than it was then.
AI, Energy, and Services: Overlooked Value
William Li stated that investors have yet to fully recognize the value of Nio’s full-stack technology, AI capabilities, brand assets, and energy business. He also pointed to the company’s services and community business, which generated more than $1.5B (~AUD 2.1B) in revenue last year and remained profitable in the first and second quarters of 2026.
Nio’s chip unit, GeniTech Co Ltd (Shenji), has deployed its NX9031X chips in both Nio and Onvo vehicles, with cumulative shipments exceeding 300,000 units. GeniTech began licensing technologies to a third party in late 2025. According to a July research note from Morgan Stanley, GeniTech is shifting Nio’s investment case toward a vertically integrated AI chip platform.
Battery Swap and Energy Business Expansion
As of September 4, 2026, Nio operated 4,065 battery swap stations in China and had completed more than 123 million battery swaps. The company’s first fifth-generation battery swap stations now support all three of its brands: Nio, Onvo, and Firefly.
Li emphasized that the market continues to underestimate the strategic value and earnings potential of Nio’s energy business.
Vehicle Pricing, Margins, and Market Focus
Nio’s average vehicle transaction price was $60,269 (~AUD 84,177) in the second quarter, rising to $64,515 (~AUD 90,107) in July 2026. Li stated that the July average surpassed those of Mercedes-Benz, BMW, and Audi. The company’s vehicle margin was 18.5% in the second quarter, nearly unchanged from 18.8% in the first quarter.
Since 2025, EBIT has been Nio’s most important internal operating metric, reflecting a focus on earnings quality. Li said Nio will continue to concentrate resources on China’s premium auto market and will not rush to develop additional growth engines.
Competitor Comparison
Nio operates in a highly competitive market alongside Tesla, XPeng, and Li Auto. Tesla remains a global leader in electric vehicles with a broad model range, while XPeng and Li Auto target similar premium and technology-focused segments in China. Nio differentiates itself with its battery swap infrastructure and integrated AI chip development, but faces ongoing pressure from these established rivals.
Historical Context
Nio’s sales reached 326,028 units in 2025, representing a 46.9% increase over the previous year. The company has maintained a positive year-on-year trend, with a 22.8% increase reported most recently. Despite these achievements, Nio’s stock price has not reflected its operational improvements, which Li attributes to shifting investor focus toward AI companies.
Why this matters
Nio’s experience highlights the challenges faced by EV manufacturers in gaining recognition for their broader technology and energy businesses. As investor attention shifts toward AI, companies like Nio must demonstrate the value of their integrated platforms and services to achieve a fair market valuation.
The company’s continued investment in battery swap stations, AI chips, and premium vehicle offerings positions it as a significant player in China’s evolving EV landscape.
What this means for buyers
For consumers, Nio’s focus on premium vehicles, advanced technology, and battery swap infrastructure means continued access to innovative features and services. Buyers should monitor Nio’s operational results and upcoming model launches, such as the new Onvo vehicle expected next year, to assess the company’s ongoing commitment to quality and technology leadership.
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Key Specs
- Second-quarter revenue: $4.8B (~AUD 6.7B)
- Adjusted profit from operations (Q2): $30.7M (~AUD 42.9M)
- GAAP net loss (Q2): $78.4M (~AUD 109.5M)
- Battery swap stations (as of Sep 4, 2026): 4,065
- Cumulative battery swaps: 123 million+
- Average vehicle transaction price (Q2): $60,269 (~AUD 84,177)
- Average vehicle transaction price (July 2026): $64,515 (~AUD 90,107)
- Vehicle margin (Q2): 18.5%
Source
Images sourced from: luxe.digital, caranddriver.com, businessinsider.com
