Nio stock drops 40% from highs despite 69% revenue surge

Nio's stock fell to its lowest level since July 2025, dropping over 40% from its yearly high to $4.20, after the company reported continued net losses of $77.8 million in the latest quarter despite strong revenue growth. Revenue surged 69% year-over-year to $4.7 billion in Q2, with gross margins improving to 18.4% from 10.3% a year earlier. However, losses widened, and the stock broke below a key technical support level at $4.40, signaling bearish momentum. Technical analysis suggests the stock may continue falling toward $3.50, though a falling wedge pattern hints at a possible rebound. Other Chinese EV makers like BYD, XPeng, and Li Auto have also declined despite strong results, reflecting sector-wide pressures from high costs and weak demand.