Nio Inc. (NIO) shares are heading for their worst month of 2026. CEO William Li reportedly rejected a stock buyback during a meeting with European owners. This decision amplified retail investor concerns regarding liquidity and share dilution.
The stock declined significantly in September and remains down substantially year-to-date. Investors on Stocktwits argue the company lacks the financial flexibility for a buyback. These market participants suggest Nio must prioritize profitability over share repurchases.
Nio reported significant cash and short-term investments at the end of the second quarter. A large portion of these assets is restricted. The company also maintains a low current ratio.
Li plans to focus on Nio's core premium vehicle business over the next three years. He described this period as the most brutal stage for the Chinese auto industry.