SKN | JPMorgan’s Nio Position Shrinks 79% From Late-2025 High as EV Stake Unwind Accelerates

Key Points

• JPMorgan cut its Nio position by approximately 59% in the second quarter, selling nearly 3.9 million American depositary shares and reducing its holding to 2.69 million shares.
• Across the first and second quarters of 2026, JPMorgan has reduced its Nio position by approximately 78.8% from the 12.7 million-share peak recorded at the end of 2025.
• The reduction comes despite Nio reporting 107,658 second-quarter vehicle deliveries, up 49.4% year over year, highlighting the divergence between operating momentum and institutional positioning.

 

JPMorgan’s latest portfolio filing shows a substantial reduction in its exposure to Nio, extending a dramatic reversal from the position the bank accumulated only months earlier.

The bank held 2,688,359 Nio American depositary shares as of June 30, down from approximately 6.56 million shares at the end of March. The latest reduction represents a decline of roughly 59% during the second quarter and leaves the position valued at approximately $12.2 million.

The scale of the reversal becomes more significant when viewed against the end of 2025. JPMorgan held nearly 12.7 million Nio shares at the end of the fourth quarter, valued at approximately $64.7 million. Across the first two quarters of 2026, the bank has therefore disposed of roughly 10 million shares, reducing the position by 78.8% from its late-2025 peak.

For institutional investors, the development is less about one quarterly filing than the speed with which a previously significant position has been unwound.

JPMorgan’s Nio Position Has Historically Been Highly Tactical

JPMorgan’s relationship with Nio has been characterized by significant fluctuations since the bank first invested in the company in the first quarter of 2019.

The position initially expanded rapidly during 2019 and 2020, exceeding 10 million shares in the third quarter of 2020. The bank subsequently sold approximately 73% of its position during the final months of 2020, shortly before Nio shares reached an all-time high of $66.99 in January 2021.

The position then stabilized at lower levels through 2022 before declining during 2023 and 2024.

The most dramatic changes occurred in 2025. JPMorgan nearly exited its Nio position during the first quarter, selling 95.3% of its holdings and reducing the position to just 187,562 shares while simultaneously purchasing put options that benefited from further declines.

The bank then reversed direction during the remainder of the year, adding approximately 4.75 million shares in the second quarter before reducing the position in the third quarter and ultimately increasing it to a five-year record by year-end.

The latest filing therefore represents another major reversal rather than a continuation of a stable long-term accumulation strategy.

The Current Holding Is Back Near 2024 Levels

At 2.69 million shares, JPMorgan’s current Nio position is broadly comparable with the level maintained during much of 2024.

That makes the late-2025 accumulation appear increasingly temporary in retrospect.

The bank moved from a position of only 187,562 shares in early 2025 to almost 12.7 million shares by the end of the year, before cutting the holding to 2.69 million shares by June 2026.

This pattern suggests that JPMorgan’s exposure to Nio has been highly responsive to changing expectations around the company’s valuation and operating outlook.

The latest reduction does not by itself establish why the bank sold. The filing shows the change in holdings, but the source does not provide JPMorgan’s specific rationale for the latest disposal.

Nio’s Operating Performance Tells a Different Story

The reduction in JPMorgan’s position occurred despite improving vehicle-delivery momentum at Nio.

The Chinese electric-vehicle manufacturer delivered 107,658 vehicles during the second quarter, representing a 49.4% increase from the same period a year earlier and a 29% increase from the first quarter’s 83,465 units.

Nio’s ES9 flagship SUV also began deliveries on May 27 and surpassed 20,000 cumulative units within 73 days.

Yet Nio’s U.S.-listed shares declined 16.1% during the second quarter. The stock fell from $6.03 on March 31 to $5.06 by June 30 after reaching $7.00 on April 17.

The divergence is notable. Vehicle deliveries accelerated while the share price weakened and JPMorgan substantially reduced its institutional exposure.

That suggests investors are weighing factors beyond delivery growth, although the source does not identify a specific reason for JPMorgan’s sales.

Other Institutions Are Taking Different Positions

JPMorgan is not alone in adjusting its Nio exposure, but institutional positioning has become increasingly mixed.

BlackRock reduced its Nio position by 11.8% during the second quarter, selling more than 1.2 million shares and ending the period with 9,461,793 ADS valued at approximately $47.9 million.

Deutsche Bank also reduced its position by 18%, leaving it with 341,698 ADS valued at approximately $1.7 million. At the same time, Deutsche Bank increased its exposure to XPeng and Li Auto.

Citigroup moved in the opposite direction, adding 186,358 Nio ADS during the quarter. That represented a 37.7% increase and lifted Citi’s position to 680,573 shares.

IMC-Chicago was more aggressive, increasing its Nio position by 120.4% to 2,572,872 ADS while simultaneously reducing its Tesla exposure and exiting Rivian.

The divergence demonstrates that institutional investors are not responding uniformly to Nio’s recent performance.

What the Institutional Shift Means for Nio

JPMorgan’s reduction is significant because the bank had previously built its largest-ever position in Nio only six months earlier.

However, the latest filing should be interpreted within the context of JPMorgan’s historically active trading pattern in the stock. The bank has repeatedly moved from substantial accumulation to significant reductions over the past seven years.

Nio’s operating performance also remains an important counterpoint. Second-quarter deliveries grew nearly 50% year over year, indicating that the company’s vehicle volumes are expanding even as several major institutions adjust their holdings.

For investors, the more relevant question is whether improving deliveries can translate into stronger financial performance and a more durable equity-market valuation.

Closing Insights

JPMorgan’s 78.8% reduction from its late-2025 Nio position represents one of the clearest examples of how quickly institutional exposure to China’s electric-vehicle sector can change.

The bank’s current holding has returned to levels broadly comparable with 2024, following an extraordinary accumulation and subsequent liquidation cycle during 2025 and 2026.

Yet the institutional picture is not uniformly negative. BlackRock and Deutsche Bank also reduced their positions, while Citigroup and IMC-Chicago increased theirs. At the same time, Nio’s vehicle deliveries accelerated substantially during the second quarter.

For sophisticated investors, the key signal is therefore not simply that JPMorgan is selling. It is the growing divergence between institutional positioning, share-price performance and Nio’s operating momentum. How effectively the company converts its rising delivery volumes into sustainable earnings will ultimately determine whether the recent institutional selling represents prudent repositioning or an opportunity that other investors are prepared to capture.

For a confidential discussion regarding China equity exposure, institutional portfolio positioning, cross-border investment risk, emerging-market allocation, capital preservation, or strategic diversification across global financial markets, contact our senior advisory team.