Nio (NIO) stock has risen 21% over the past month, as investors cheered the Chinese electric vehicle (EV) maker’s efforts to improve margins, new launches, and resilient deliveries. However, NIO stock is still down 2.5% year-to-date amid intense competition in the Chinese EV market, macro challenges, and an uncertain path to profitability. Despite improved investor sentiment, most Wall Street analysts remain cautious on NIO stock and see a modest upside potential from current levels.
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Analysts Are Cautious on NIO Stock
Nio delivered 24,925 vehicles in June 2025, reflecting a year-over-year increase of 17.5%. Overall, the company’s Q2 deliveries grew 25.6% year-over-year to 72,056 units. The company is optimistic about its upgraded models, including the ET5 Sedan and ET5 Touring, the recently launched ONVO L90, and upcoming launches, such as the L80 in Q4 2025. However, profitability concerns continue to weigh on Nio. Despite higher sales, the company reported a wider-than-anticipated loss for Q1 2025.
Recently, Morgan Stanley analyst Tim Hsiao reiterated a Buy rating on NIO stock with a price target of $5.90. Reacting to the launch of the ONVO L90 SUV, Hsiao noted that the deliveries for this model will commence on August 1. He also noted the various features of the L90 and stated that although he “strongly” recognizes the new model’s advantages in a competitive market, “beating market expectations isn’t without challenges considering ONVO’s unsatisfactory track record of execution and inferior brand awareness.” Hsiao believes that it would require additional effort for ONVO to leverage L90 and the upcoming L80 to overcome these shortcomings.
Last month, Goldman Sachs analyst Tina Hou upgraded NIO stock to Hold from Sell and slightly increased the price target to $3.80 from $3.70. The 4-star analyst upgraded the rating on NIO stock on early signs that the Chinese EV maker’s operating cost cuts may help address margin pressures. Hou noted that the company is targeting 20% to 25% of operating expenses savings through various initiatives, including integration across business units and headcount reductions. However, Hou remains sidelined on NIO stock due to cash flow concerns, high debt levels, and volume growth amid rising competition in the EV industry.
Is Nio Stock a Buy, Hold, or Sell?
Overall, Wall Street is sidelined on NIO stock based on six Holds, two Buys, and one Sell recommendation. The average NIO stock price target of $4.50 indicates a 6% upside potential from current levels.
