Nio Recalls 246,229 EVs; Li Auto Shares Slide 3.3%
Nio has recalled 246,229 ES8, ES6 and EC6 electric vehicles over a software issue causing brief instrument cluster and central screen blackouts, covering roughly 75% of its 2025 sales. The company forecasts Q4 adjusted operational profit of CNY0.7–1.2 billion after a CNY5.54 billion loss in the prior year, pressuring Li Auto shares down 3.3%.
1. Nio Recall Scope and Cause
Nio is recalling 246,229 ES8, ES6 and EC6 models produced between March 2018 and January 2023 due to software faults that can cause temporary blackouts of the instrument cluster and central control screen, representing about 75% of its 2025 volume.
2. Nio Profit Alert and Recovery
The recall follows Nio’s Q4 profit alert, forecasting adjusted operational profit of CNY0.7–1.2 billion compared to a CNY5.54 billion loss in Q4 2024, underscoring a rapid turnaround driven by a 96.1% year-over-year delivery increase and over one million cumulative sales.
3. Impact on Li Auto's Competitive Position
With Nio addressing safety issues and posting its first profit, Li Auto may face intensified competitive pressure in China’s EV market but could capitalize on any residual consumer wariness around software reliability.
4. Li Auto Share Performance and Outlook
Li Auto shares fell roughly 3.3% in reaction to Nio’s announcement, while analysts evaluate potential production or delivery impacts and assess whether Li Auto can maintain its recent growth momentum amid evolving market dynamics.