Nio (NIO) stock rebounded over 3% in Wednesday’s trading after a steep drop in the previous trading session. Analysts at Morgan Stanley discussed investor concerns over the production ramp-up of Onvo’s new L90 SUV and speculation about a potential capital raise.
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L90 Rollout Faces Execution Hurdles
Morgan Stanley highlighted uncertainty around the L90’s production ramp-up. Nio’s history of delivery delays has kept investors cautious, and concerns grew when Onvo, its mass-market brand, replaced the L90’s standard 85-kWh battery with a smaller 60-kWh version offered for rental.
While the bank’s checks suggest supply issues may be less severe than feared, the sudden change has still raised doubts about Nio’s production readiness.
Speculation over Fundraising Adds Pressure
The analysts also noted that Nio’s stock price rally in both U.S. and Hong Kong trading has fueled speculation about a potential capital raise. While no such plans have been confirmed, funding concerns remain common for EV startups.
Morgan Stanley also warns that fragile investor sentiment is amplifying risks. With expectations for the L90 now running high, the bank says consistent, high-quality execution will be key for Nio to outperform.
Is Nio a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on NIO stock, based on three Buys, six Holds, and one Sell assigned in the last three months. The average NIO stock price target of $4.60 implies 0.43% downside potential from current levels.
