NIO Inc. (NYSE:NIO) shares are trading lower in the premarket session on Tuesday.

The Chinese EV manufacturer recently marked its 10th anniversary, with the company's founder, chairman, and CEO, William Li, addressing employees through an internal letter.

In the message, Li emphasized the critical importance of the next two years for the company's future, reported CnEV Post. Li outlined key objectives, including the launch of competitive new products and enhancing operational efficiency.

These efforts are aimed at doubling NIO's sales in the coming year and achieving profitability by 2026, which he described as non-negotiable goals. Li urged the team to focus their full energy on meeting these targets.

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This week, Goldman Sachs analyst Tina Hou downgraded NIO from Neutral to Sell and lowered the price target from $4.80 to $3.90, citing competitive pressures and a difficult path to profitability ahead.

The analyst notes NIO is unfavorably positioned heading into 2025 given the slow production ramp of Onvo and the company's limited new model pipeline.

Recently, NIO guided deliveries of 72,000–75,000 units for the fourth quarter, or a 43.9% – 49.9% year-over-year increase.

The company expects fourth-quarter revenue of $2.804 billion – $2.904 billion, representing 15.0% – 19.2% year-over-year growth.

According to Benzinga Pro, NIO stock has lost over 35% in the past year. Investors can gain exposure to the stock via Invesco Golden Dragon China ETF (NASDAQ:PGJ).

Price Action: NIO shares are trading lower by 1.29% to $4.61 premarket at last check Tuesday.

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