NIO stock drops after disappointing earnings and outlook

NIO Inc. reported disappointing earnings for the fourth quarter and the full year of 2024. The results did not meet analysts' expectations, causing the company's stock to drop nearly 7% since the announcement. Analysts have lowered their ratings for NIO, hinting that the company may not achieve positive free cash flows in the near future. This news comes as a setback for investors who were hoping for better financial performance. The earnings disappointment raises concerns about NIO's ability to improve its financial situation. Investors are now uncertain about the company's short-term prospects as it continues to face challenges in the electric vehicle market.