NIO stock has 22% upside, so why are investors still staying away?

NIO reported a second straight quarter of adjusted profitability, with revenue more than doubling year over year and deliveries nearly doubling. Despite the strong operating progress, the stock slipped, suggesting investors may have expected even more or remain cautious on the sustainability of the turnaround. The update is positive for fundamentals but not enough to override near-term sentiment.

Analysis

NIO reported a second straight quarter of adjusted profitability, with revenue more than doubling year over year and deliveries nearly doubling. Despite the strong operating progress, the stock slipped, suggesting investors may have expected even more or remain cautious on the sustainability of the turnaround. The update is positive for fundamentals but not enough to override near-term sentiment.