NIO Stock Hits The Brakes After 3-Day Rally: Xiaomi Reportedly In Talks Over Last German Hub Amid 90% Sales Crash

Munich became Nio’s only remaining German hub after its Cologne and Weiterstadt locations closed last month.

• Xiaomi reportedly held talks over Nio’s last German sales and service hub, with representatives visiting the Munich facility repeatedly.
• Nio registered just one vehicle in Germany last month and 20 through the first nine months of 2026, down 90.5% year-over-year.
• Xiaomi is preparing to begin overseas vehicle sales in the second half of 2027 and has signed preliminary agreements with eight German dealer groups.

U.S.-listed shares of Nio, Inc. (NIO) snapped a three-day rally on Thursday as a report revealed that Xiaomi had held talks over its last remaining German sales and service hub, putting the EV maker’s struggling business in the country back in focus.

Nio’s U.S.-listed shares fell 4% on Thursday, marking their worst session in more than a week. The stock is still up 1% for the week, on track for its strongest weekly performance since late August and poised to snap a six-week losing streak. 

Nio’s Last German Hub Draws Xiaomi’s Interest

Xiaomi representatives have visited the Munich facility several times, EV reported, citing a person familiar with the matter. The visiting Xiaomi representatives were apparently often accompanied by Hui Zhang, Nio’s group vice president and managing director for Europe.

The Munich hub combines a showroom, community space and workshop, supporting sales, test drives, deliveries, maintenance and repairs. Nio opened it in June 2023 at a property previously occupied by a Ferrari dealership. The facility became Nio's only remaining German hub after its Cologne and Weiterstadt locations closed at the end of last month. It is also the company’s only site in Germany with its own workshop.

Nio’s German Business Slows To Just 20 Registrations

The reported discussions follow a steep decline in Nio’s German business. The company registered just one vehicle last month, bringing its January-September total to 20. This compares with 1,263 registrations in 2023, its first full year in the market.

Nio attributed its recent hub closures to automotive market conditions and efforts to optimize its European operations. When Nio notified users of the closures in July, a company representative said the changes were “not a retreat” and that it was leaving neither Germany nor Europe.

However, its Nio Houses in Berlin, Frankfurt, and Dusseldorf remain open. German owners can also arrange maintenance through partner workshops, with 25 locations listed on the company’s service page this week. Nevertheless, Nio has moderated its regional expansion plans. CEO William Li said last month that the company would not pursue European growth “for its own sake.”

Xiaomi Builds Toward 2027 European Launch

Xiaomi, meanwhile, is building the infrastructure for its European automotive debut. At last month's IFA trade show in Berlin, the company announced its European launch plans and signed non-binding memoranda of understanding with eight German dealer groups.

Founder and CEO Lei Jun has said overseas vehicle sales will begin in the second half of 2027. Xiaomi has yet to disclose its European model lineup, pricing or delivery timetable. The company already operates an automotive research and development center in Munich, headed by former BMW manager Rudolf Dittrich. It also recently hired former XPeng executive Jens Olsen as head of the Nordics, Central and Eastern Europe.

Record Battery Swaps Offer Bright Spot In China

Nio’s weaker German performance comes alongside continued growth and infrastructure milestones in China. The company completed a record 183,664 battery swaps on October 5, surpassing the previous daily high set four days earlier. Its Chinese network stood at 4,165 swap stations this week, though it still needed 511 more to meet its 2026 expansion target.

Onvo, NIO’s family-focused brand, also announced its 200,000th cumulative vehicle delivery on Thursday, about two years after deliveries began. The milestone follows softer recent sales: Onvo delivered 8,763 vehicles last month, down 43% year-over-year and marking its fourth consecutive monthly decline. Across its brands, Nio delivered 109,178 vehicles globally in the third quarter, up 25% from a year earlier.

How Do Retail Traders Feel About NIO?

On Stocktwits, retail sentiment for NIO improved to ‘bullish’ from ‘neutral’ levels a week ago amid a 55% jump in 24-hour message volumes.

One user called the reported move “potentially turning costly overhead into cash savings, lower burn and stronger margins. This is disciplined capital allocation, not retreat. A leaner NIO will accelerate profitability!”

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Another user said, “$NIO Mainland China's stock market reopens tomorrow after several days of holiday closure, giving investors a chance to react to what happened during the break. I think NIO could recover a good portion of today's 4% drop. In any case, I'd much rather see a 4% daily decline accompanied by a strong acceleration in new orders than the other way around.”

View this Stocktwits post

Nio’s U.S.-listed stock has declined 33% year-to-date.

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