China’s Nio Inc (NYSE:NIO) is recalling 246,229 vehicles due to a software issue that poses safety risks, marking the largest recall by a domestic electric vehicle maker.
• NIO stock is trending lower. What’s pulling NIO shares down?
Details of the Recall
The recall affects models ES8, ES6, and EC6, manufactured between March 16, 2018 and January 16, 2023.
The software problem may cause a brief blackout of the instrument cluster and central control screen, Reuters cited from a State Administration for Market Regulation statement on Monday.
To resolve the issue, Nio will provide remote software updates for the affected vehicles and, where necessary, implement upgrades through service centers.
This recall, which accounts for about three-quarters of Nio’s 2025 sales volume, surpasses the one issued by Xiaomi Corp (OTC:XIACY) in September.
That recall involved more than 115,000 SU7 electric sedans to address safety concerns related to assisted driving features.
Additionally, Chinese EV brand Zeekr will recall 38,277 vehicles due to safety concerns linked to power batteries, according to another statement from the market regulator.
Positive Outlook Despite Setbacks
Nio saw its stock surge on Thursday after the company issued a positive profit alert for the fourth quarter of 2025, indicating a strong recovery from the previous year.
The company, a major competitor to Tesla Inc (NASDAQ:TSLA), expects adjusted operational profit of about 0.7 billion to 1.2 billion Chinese yuan (roughly $100 million to $172 million) for the fourth quarter.
This contrasts with a 5.54 billion Chinese yuan loss in the fourth quarter of 2024.
In January, Nio reported a 96.1% year-over-year delivery growth, reaching 27,182 vehicles.
The third-generation ES8 SUV led deliveries, accounting for nearly two-thirds of the total, and Nio surpassed one million cumulative deliveries.
The company is focusing on smart EV technologies and launching the upgraded Nio WorldModel in January 2026 to enhance features such as assisted driving, smart parking and safety.
Expanding Infrastructure and Future Growth
Additionally, Nio is expanding its battery swapping and charging network to support future growth, even as rivals like Li Auto Inc (NASDAQ:LI) and XPeng Inc – ADR (NYSE:XPEV) reported delivery declines.
NIO Price Action: Nio shares were down 2.68% at $4.91 at publication on Monday, according to Benzinga Pro data.
Photo: Michael Vi via Shutterstock
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