Nio Stock Surges On Policy Support, Then Reverses On Final Trading Day Of 2025

Nio Inc – ADR (NYSE:NIO) shares are under pressure on Wednesday, the final trading day of 2025, after rallying over the past week. The stock jumped on Tuesday alongside other Chinese EV makers.

• Nio stock is feeling bearish pressure. Why is NIO stock falling?

Beijing Extends EV Trade-In Perks Into 2026

Tuesday's advance followed confirmation from China's National Development and Reform Commission and Ministry of Finance that vehicle trade-in incentives will be extended into 2026, easing fears of a sudden drop-off in subsidies for new-energy vehicles.

Under the updated framework, buyers who scrap older cars and purchase EVs can receive rebates worth low double-digit percentages of the purchase price, with slightly smaller support for qualifying gasoline models. Nio also gained on signs of continued European expansion, as its compact Firefly brand began deliveries in Austria and additional EU markets.

Wednesday’s Pullback Towards Support

With no fresh company-specific headlines on Wednesday, some investors may be locking in profits after Nio's recent run and strong December gains. Others may be reacting to lingering concerns around supply constraints in models like the ES8 SUV, which the company has flagged in recent updates. Broader volatility in Chinese equities and year-end portfolio rebalancing could also be weighing on the stock.

Nio stock found support around the $5 level in early December before staging a rally over the past week. The stock appears to be headed back to test support from earlier in the month.

Despite the latest dip, Nio shares remain modestly higher year-to-date and are still up firmly over the past six months, reflecting renewed optimism that sustained policy support and overseas expansion can help the EV maker regain momentum in 2026.

Benzinga Edge Rankings: According to Benzinga Edge rankings, Nio carries a strong Momentum score of 88.24, signaling robust longer-term price strength even as the stock sees short- and medium-term volatility.

NIO Price Action: Nio shares were down 8.67% at $5.02 at the time of publication on Wednesday, according to Benzinga Pro data.

Traders will be looking for signs of a reversal or stabilization around the current support level. If Nio can hold above $5.00, it may create a base for a potential rebound, but sustained weakness could lead to further declines, possibly testing the lower bounds of its 52-week range.

Read Also: Elon Musk Teases Tesla Cybercab Scale-Up As Robotaxi Push Accelerates

Image: Shutterstock