Nio (NIO) shares dropped 7.3% in Hong Kong on Wednesday after the carmaker forecast fourth-quarter revenue of as much as 34.04 billion yuan ($4.8 billion).
The outlook falls short of expectations of 34.7 billion yuan, Bloomberg News reported.
The company’s sales outlook of between 120,000 and 125,000 vehicles also missed analyst estimates.
That said, the Shanghai-based company said it remains confident in breaking even on an adjusted profit basis for the fourth quarter and 2026.
Bernstein analysts said in a note that hitting that profitability metric in the fourth quarter is feasible, but they remain cautious about NIO’s outlook and its ability to sustain solid breakeven levels into 2026.
“We are particularly concerned that some cost reductions, especially in R&D, could impact the company’s long-term position and technological competitiveness,” the Bernstein analysts added.