Nio shares fell 4.02% to $4.06 after the Chinese EV maker's second-quarter revenue missed estimates despite strong year-over-year growth. Trading volume surged to 77.8 million shares, 174% above its three-month average. The company reported Q2 revenue jumped 69.1% year over year and 26% sequentially from Q1, but fell short of expectations amid intense competition in China and Europe. Vehicle margins also declined from the previous quarter, raising concerns about price pressures and rising component costs. Nio posted stronger August delivery numbers, with unit volume up 14.5% year over year, driven by its new mass-market sub-brands Firefly and Onvo. However, the company still reported a small operating loss in Q2, slightly worse than Q1 results. The broader market declined, with the S&P 500 down 0.71% and Nasdaq falling 1.03%.

NIO Inc reported record financial results for Q2 2026, with total revenue reaching RMB32.1 billion, up 69.1% year-over-year. The Chinese electric vehicle maker delivered 107,658 vehicles in the quarter, a 49.4% increase from the previous year. Vehicle gross margin stood at 18.5%, despite rising raw material and chip costs. The company achieved adjusted operating profit of RMB0.2 billion and positive free cash flow, boosting its cash position to RMB56.7 billion. NIO's flagship ES9 model faces wait times of 3-4 months due to strong demand, whilst the ES8 surpassed 140,000 deliveries. The company expanded its battery swap network to 4,123 stations, including a new fifth-generation station costing RMB1.4 million. For Q3 2026, NIO expects deliveries between 108,000 and 111,000 units.

Xiaomi has unveiled its in-house self-driving chip, the Xring D100, for commercial deployment in 2027. The chip will be built on a 3-nanometre process and features a 20-core CPU and 16-core NPU. It will run large language models with 200 billion parameters locally. Xiaomi's electric vehicles currently rely mainly on Nvidia's Thor chips for smart-driving systems. The company joins other Chinese automakers developing proprietary autonomous driving technology. NIO's CEO William Li previously said in-house chip design would be more cost-efficient than competitors. XPeng has outlined its roadmap to Level 4 autonomous driving by 2028. Tesla CEO Elon Musk announced plans for the Terafab semiconductor facility in Texas, which would develop chips using a 2-nanometre process.