NIO Stock Under Fire: Slowing October Deliveries Pile On the Pressure

Nio (NYSE:NIO) stock extended its steep sell-off last week, falling to its lowest level since April 2025 and sitting about 60% below its 2025 peak. The decline may continue in the coming days, as the company’s vehicle deliveries dropped sharply in October.

Nio Vehicle Deliveries Dropped in October

Nio, a top Chinese electric vehicle company, published a weak vehicle delivery report, confirming the view that the Chinese electric vehicle industry is slowing. 

In a report, the company said that it delivered 34,246 vehicles in October, down from the 40,397 it delivered in the same month last year. 

The deliveries brought the year-to-date sales to 334,547, up by 38% from a year earlier. Most of its deliveries were from its Nio brand, followed by ONVO and Firefly. 

Before the October decline, Nio had been posting strong sales, which made it one of the fastest-growing automakers in China. It delivered 37,408 vehicles in September, up 7.7% from a year earlier, while its July and August deliveries rose 71% and 14.5%, respectively.

The slowing sales come at a time when the Chinese electric vehicle industry is facing major challenges. A price war among top companies like BYD, XPeng (NYSE:XPEV), Li Auto (NASDAQ:LI), Polestar, and Xiaomi is affecting their margins and growth.

At the same time, passenger sales in the country are on track for the worst year on record. Sales dropped by 22% through September, and analysts warn that the trend will continue. 

Weakness in the Chinese market is a major challenge for Nio, which has lost more than $1 billion every year since 2021. In its latest earnings report, the company said revenue rose 69.1% in the second quarter to $4.73 billion, driven by a jump in vehicle deliveries to 107,658 from 72,056 in the same period last year.

Nio Stock Has Dropped to a Key Support Level

The daily chart shows that the stock has been in a strong sell-off in the past few months. It has dropped from last year’s high of $8 to the current $3.38.

The stock has already moved below the important support level of $3.38, its lowest level in June last year. Moving below that level has confirmed the bearish breakout.

Nio has moved below the 50-day Exponential Moving Average (EMA). At the same time, the Average Directional Index (ADX) has jumped to 26, its highest level since December, a sign that the downward momentum is continuing. The Relative Strength Index (RSI) has dropped to the oversold level.

Therefore, the stock will likely continue falling as its growth decelerates. This means that it may drop below the support of $3.0.

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