NIO-SW shares plunged 8.39% in intraday trading on Friday, as investors braced for the Chinese electric vehicle maker's fourth-quarter earnings report scheduled for release before the market opens. The sharp decline reflects growing anxiety among shareholders about the company's financial performance and future outlook.

The upcoming earnings report is drawing significant attention, particularly as NIO has missed analyst revenue estimates for three consecutive quarters. While the company reported a record-breaking 72,689 vehicle deliveries in Q4, investors seem cautious about how this will translate into financial results. Analysts expect NIO to report Q4 revenue of $2.85 billion, up from $2.41 billion in the previous year, and earnings per share of 40 cents, compared to a loss of 39 cents per share a year ago.

Several key factors are likely influencing investor sentiment. NIO recently announced a strategic partnership with Contemporary Amperex Technology Co., Ltd (CATL) to expand its battery-swapping network, which could impact future growth. Additionally, the performance of ONVO, NIO's new lower-priced EV brand launched in May 2024, will be closely watched. The company's emphasis on reaching profitability is another crucial aspect that investors will be looking for in the earnings report and forward guidance. As the market awaits these critical updates, the stock's significant drop suggests that some investors may be positioning themselves defensively ahead of the earnings announcement.