Chinese EV maker Nio (NIO) is set to report second-quarter earnings on September 2, with analysts expecting a loss of $0.31 per share on revenue of $2.73 billion. Ahead of results, NIO stock has been on a strong run, climbing more than 21% in the past five sessions and up 42% over the past three months.
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The rally has been fueled by new product launches and aggressive pricing moves. Nio recently introduced its all-new ES8 SUV, a three-row model now open for pre-orders in China. The company has also cut prices across its long-range vehicle lineup to better compete with Tesla’s (TSLA) latest six-seat Model Y L SUV. At the same time, investor enthusiasm around Nio’s new mass-market Onvo brand, particularly the L90 SUV, has given the stock added momentum.
Still, while Nio has gained strong investor attention, Wall Street analysts remain split on where the stock goes next.
Morgan Stanley Turns More Positive
Earlier this week, Morgan Stanley analyst Tim Hsiao lifted his price target on Nio to $6.50 from $5.90, while keeping a Buy rating. Hsiao pointed to operational improvements and robust early demand for the Onvo L90 as key drivers.
The analyst did lower his 2025 delivery forecast by 9% to 330,000 units, reflecting a softer first half of the year. However, he kept estimates for 2026 and 2027 deliveries at 470,000 and 586,000 units, suggesting that demand for the new models remains intact. Hsiao also raised gross margin forecasts for 2026–27 and cut expected 2025 operating expenses by 10%, citing restructuring and cost-saving efforts that could improve profitability.
J.P. Morgan Stays Cautious
Meanwhile, J.P. Morgan analyst Nick Lai also raised his price target, moving it up to $4.80 from $3.06, but maintained a Neutral rating.
Lai acknowledged the strong early reception of the Onvo L90 but warned that Nio’s history of volatility and the intense competition in the EV space remain risks. He noted that the recent rally is impressive, but future stock performance could depend heavily on sustained demand for the L90, the timing of the L80 launch, and sales momentum for refreshed models like the ES8 and upcoming ES9.
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 $4.62 implies 15.34% downside potential from current levels.
