On June 4, Nomura issued a report detailing NIO's (NIO.N) first-quarter 2025 financial results, which were announced prior to the U.S. market opening on June 3. The company reported quarterly revenue of RMB 12 billion, marking a 21% year-over-year increase but a 39% decline from the previous quarter, slightly underperforming market forecasts. Vehicle deliveries met projections, surging 40% year-over-year to 42,100 units. Vehicle sales revenue stood at RMB 9.9 billion, up 19% year-over-year but down 43% quarter-over-quarter, primarily attributed to a shift in product mix, which led to a 15% year-over-year decrease in the average selling price of vehicles. Nomura emphasized that revenue growth was predominantly influenced by sales volume, with both the year-over-year growth and quarter-over-quarter decline narrowing. The firm attributed NIO's operating loss rate of 53.3% to a 47% year-over-year surge in selling, general, and administrative expenses, driven by higher costs associated with sales personnel and intensified sales and marketing activities. Consequently, Nomura maintains its neutral rating on NIO's U.S. stock with a price target of $5.