CEO William Li apparently ruled out a share buyback during a closed-door meeting with European owners.
- Nio held 56.60 billion yuan in cash, restricted cash and short-term investments as of June 30, although nearly one-quarter was restricted.
- The company had only 1.63 billion yuan in working capital and a current ratio of 1.02, while trade and notes payable reached 60.39 billion yuan.
- Li plans to focus on Nio’s core business, premium vehicles and key markets over the next three years.
U.S.-listed shares of Nio, Inc. (NIO) are headed for their worst month of 2026 as the CEO’s reported rejection of a stock buyback intensified retail investors’ concerns about the EV maker’s liquidity, dilution and path to profitability.
Nio’s U.S.-listed shares closed 0.56% lower at $3.58 on Wednesday, extending their September decline to 15% and their year-to-date loss to 30%.
NIO Retail Traders Fear More Pain
Founder and CEO William Li told a closed-door meeting with European owners in Amsterdam that Nio would not repurchase its shares, according to attendee Marnix Billiau.
“There will not be a buyback,” Billiau, a member of Nio’s European User Advisory Board, said on X. When asked again whether any measure to support the share price had been discussed, he reiterated that Li had ruled out a buyback.
The reported refusal fueled an anxious debate among retail traders. Sentiment on the platform was ‘bearish’ amid a 28% rise in 24-hour message volumes.
“I am not a bear,” one user said, arguing that Nio lacked the financial flexibility to repurchase shares. “Nio needs to be profitable, not just break even.” Another trader warned that investors with average costs above $10 might not recover their money until 2030, citing Nio’s stock issuance and convertible securities. “If he will be diluting more it will be like a kiss of death here,” the user said. “NO MORE DILUTION William Li!”
A more bullish user urged fellow shareholders to buy enough stock to push Nio above $5.52 by Sept.25.
Why A NIO Buyback Looks Unlikely
As of June 30, Nio held 17.45 billion yuan in cash, 13.51 billion yuan ($2.01 billion) in restricted cash, and 25.63 billion yuan in short-term investments, totaling 56.60 billion yuan. Nearly one-quarter of this amount was restricted.
After borrowings of 17.61 billion yuan, Nio had net cash of about $5.75 billion. However, current assets of 89.25 billion yuan only narrowly exceeded current liabilities of 87.62 billion yuan, leaving working capital of 1.63 billion yuan, or about $240 million, and a current ratio of 1.02.
Trade and notes payable totaled 60.39 billion yuan, or $8.90 billion, more than the company’s cash, restricted cash, and short-term investments combined. Rival Li Auto, which announced a $1 billion repurchase in March, had working capital of 43.99 billion yuan, or about $6.48 billion, and a current ratio of 1.81 at the same date.
Nio’s Answer To Market Skepticism
Li said earlier this month that Nio must win over investors through results. “It is difficult to convince investors,” he said. “Many people simply lack imagination about the business we are in.”
He called Nio an energy and AI company whose value the market has yet to recognize. Its profitable services and community business generated more than 10 billion yuan in 2025 and 5.8 billion yuan in the first half of 2026, providing “relatively predictable earnings” and helping fund charging and battery-swap infrastructure.
Li also said that Nio is “definitely healthier” than it was at its 2021 valuation peak. Second-quarter revenue rose 69.1% to 32.14 billion yuan, vehicle margin reached 18.5% and adjusted operating profit totaled 206.9 million yuan. However, the company still posted a GAAP net loss of 528 million yuan.
Nio’s 3-Year Survival Plan
Against what Li called “the most brutal stage of the final round” for China’s auto industry, Nio will focus on its core business, premium vehicles and key markets over the next three years. Li teased major models for 2027 but disclosed no details. Nio is slowing its launch cadence, while Firefly currently has no second model planned.
Still, Li sees “enormous room for growth,” with Nio holding just over 2% of China’s auto market and 4% to 5% of the mid-to-premium segment.
Nio’s U.S.-listed shares have shed nearly half of their value over the past 12 months.
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