NIO slides 5% on Q3 miss as China EV deliveries diverge

NIO shares fell about 5 percent after the Chinese EV maker guided third-quarter deliveries to 108,000-111,000 units, well below the 123,400 analysts expected, while rival Leapmotor delivered a record 103,129 vehicles in August.

"In the second quarter of 2026, the Company delivered 107,658 smart electric vehicles, representing a 49.4% year-over-year increase," William Bin Li, founder and chief executive officer of NIO, said in the earnings release. "All three brands, NIO, ONVO, and FIREFLY, achieved growth in both sales volume and average transaction price."

NIO's Q2 revenue reached RMB32.14 billion ($4.74 billion), up 69.1 percent year-on-year but below the RMB33.36 billion consensus. Vehicle margin held at 18.5 percent, and the company posted a non-GAAP operating profit of RMB206.9 million — its second consecutive positive quarter. The Q3 guidance gap of roughly 12,400 units below consensus points to demand softness in the premium segment as competition intensifies.

NIO's August deliveries of 35,836 units ranked fifth among China's new EV makers, behind Leapmotor, Xpeng, Li Auto, and Huawei's HIMA alliance. The company's cumulative deliveries reached 1.26 million vehicles. By brand, NIO delivered 21,174 units (up 101.2 percent), ONVO delivered 8,810 units, and FIREFLY delivered 5,852 units (up 34.7 percent).

Winners and Losers in the August Delivery Race

Leapmotor delivered 103,129 vehicles in August, up 80.7 percent year-on-year and its second consecutive month above 100,000 units. The company posted a net profit of RMB210 million in the first half of 2026 — its third consecutive half-year profit — with Q2 gross margin improving to 12.6 percent. Leapmotor is the only new EV brand in China currently profitable on a sustained basis, and it ranks among the top four global new energy passenger vehicle brands by recent comparable registration data.

Xpeng delivered 39,107 units in August, up 4 percent year-on-year, holding second place. Its flagship GX model delivered 7,338 units in August, up for the third consecutive month, with cumulative deliveries of 21,501 units. The MONA series has surpassed 310,000 cumulative deliveries. Xpeng's robot business completed a first-round financing of more than $900 million at a $6.3 billion post-money valuation, a record for China's embodied AI sector in a single private equity round. IDG Capital led the round with participation from Gaorong Ventures, plus strategic backing from Tencent and Alibaba. Xpeng's IRON robot is scheduled to enter mass production by end-2026 and launch in China and overseas markets in 2027.

Li Auto delivered 37,679 units in August, up 32 percent year-on-year, climbing to third place with cumulative deliveries of 1.8 million vehicles. ZEEKR delivered 36,981 units, up 109.8 percent, while Xiaomi delivered more than 30,000 units for the fifth consecutive month.

Seres' Slide Exposes Huawei Alliance Pressure

Seres, the primary partner in Huawei's HIMA alliance, delivered 24,244 EVs in August, down 43.96 percent year-on-year. Seres brand sales fell 49.68 percent to 20,652 units. HIMA as a whole delivered 42,101 vehicles in August, down 5.52 percent year-on-year — the third consecutive monthly decline — though new model launches including the Stelato G9 and Maextro V800/V680 generated more than 8,500 firm orders within 24 hours of launch. The Luxeed V9 MPV has surpassed 20,000 cumulative deliveries, and the Aito M6 has exceeded 45,000 units in four months.

August is not a traditional peak season for China's auto market, with extreme summer heat and typhoons suppressing overall volume, according to the China Passenger Car Association. Fuel vehicles remain under pressure from high oil prices and product aging. BYD led the broader market with 440,293 new energy vehicle sales in August, up 17.8 percent year-on-year, while Chery sold 120,909 new energy vehicles, its fifth consecutive month above 100,000.

For investors, the divergence is stark: NIO trades on premium-brand positioning but faces a demand ceiling in the RMB350,000-plus segment, while Leapmotor's scale and profitability make it the sector's standout. Xpeng's robot funding diversifies its narrative beyond EVs, and Seres' collapse raises questions about Huawei's ability to sustain growth across its five-brand alliance.

This article is for informational purposes only and does not constitute investment advice.