Nio Inc. (NIO) shares surged Thursday after the electric vehicle maker announced something it hasn't seen in its history: an actual profit. Well, almost. The company issued a profit alert for the fourth quarter of 2025, signaling what could be a major turning point after years of bleeding cash.

From Deep Red to Almost Black

The Tesla rival expects to achieve an adjusted profit from operations between 0.7 billion yuan (roughly $100 million) and 1.2 billion yuan (approximately $172 million) for the quarter. That's a dramatic swing from the 5.54 billion yuan adjusted operating loss it posted in the same quarter of 2024.

Even on a non-adjusted basis, Nio is forecasting an operating profit of 200 million to 700 million yuan ($29-100 million) for Q4 2025. The company is currently finalizing its full financial results for the three months and full year ended December 31, 2025, but felt confident enough to share the good news early.

Delivery Momentum Building

The profit forecast comes on the heels of impressive January delivery numbers. Nio reported a 96.1% year-over-year increase to 27,182 vehicles delivered, with its third-generation ES8 SUV absolutely dominating sales and accounting for nearly two-thirds of total deliveries.

The company also hit a symbolic milestone, surpassing 1 million cumulative deliveries. Not bad for a company that skeptics wrote off multiple times over the past few years.

Betting Big on Technology and Infrastructure

What's interesting is that Nio isn't pulling back on spending to reach profitability. The company continues to invest heavily in smart EV technologies, launching an upgraded NIO WorldModel in January 2026 to enhance assisted driving, smart parking, and safety features.

Nio is also doubling down on its battery swapping and charging network, a differentiator that sets it apart from Tesla Inc. (TSLA) and other competitors. This infrastructure play positions the company for future growth, even as rivals like Li Auto Inc. (LI) and XPeng Inc. (XPEV) reported declines in deliveries.

The market clearly likes what it's seeing. Nio shares jumped 9.23% to $4.84 during premarket trading Thursday, as investors bet that this profitability milestone is just the beginning of a sustained turnaround.