(Yicai) Feb. 6 -- Chinese electric vehicle startup Nio said it expects to achieve its first-ever operating profit in the fourth quarter of last year, lifting its share prices in both the US and Hong Kong markets.

Nio [HKG: 9866] closed 7 percent elevated at HKD39.10 (USD5) in Hong Kong today, while its US-listed shares [NASDAQ: NIO] ended the day 5.9 percent higher at USD4.70 yesterday.

According to a preliminary assessment, Nio expects to record an adjusted operating profit of USD100 million to USD172 million in the fourth quarter, excluding stock-based compensation expenses, the Shanghai-based EV maker announced yesterday. This compares with an adjusted operating loss of CNY5.5 billion (USD792.5 million) in the same period a year earlier.

Under generally accepted accounting principles, the company is expected to have recorded an operating profit of about USD29 million to USD100 million for the quarter, it added.

Founded in 2014, Nio has long been criticized for persistent losses. The company’s net loss widened 8 percent year on year to CNY22.4 billion (USD3.2 billion) in 2024. In the first three quarters of last year, net losses reached CNY15.7 billion, up 1 percent from a year earlier.

Against this backdrop, founder and Chief Executive Officer Li Bin said at an internal meeting in October last year that Nio must achieve profitability by the fourth quarter of 2025, warning that failure to do so would pose serious challenges to the company’s long-term development.

The expected profit in the quarter ended in December 2025 was mainly driven by sustained growth in fourth-quarter sales volume, improved vehicle margins from a favorable product mix, and the company’s ongoing cost-cutting measures and efficiency improvements, according to the announcement.

Nio launched the third-generation ES8, a large all-electric sport utility vehicle, in September last year and delivered 40,000 units within 100 days. Supported by the strong performance of this model, fourth-quarter deliveries jumped 72 percent year on year to almost 124,810 vehicles, setting a new quarterly record.

In January this year, Nio delivered more than 27,180 vehicles, up 96 percent from a year earlier but down 44 percent from December, according to the latest data.

Editors: Dou Shicong, Emmi Laine