Chinese EV maker Nio (NIO) is grabbing Wall Street’s attention after posting mixed second-quarter results and revealing a stronger delivery outlook for the rest of 2025. Despite ongoing margin pressure and a net loss, several analysts have raised their price targets, citing improved cost controls and momentum from new models.
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Here’s Why Analysts Raised Their Price Targets
Bernstein analyst Eunice Lee raised the price target to $5.50 from $4.00, maintaining a Hold rating. She highlighted the pressure on margins from lower average selling price (ASP) and increased discounts, particularly on the ET5/ET5T and ES6/EC6 models, but noted that operating expense cuts came in ahead of expectations.
At the same time, BofA Securities analyst Ming-Hsun Lee lifted his price target to $7.10 from $5.00, reiterating a Hold rating. The analyst was encouraged by Nio’s Q3 delivery guidance of 87,000-91,000 units (up 41%-47% year-over-year) and a target of 150,000 units in Q4.
Further, Lee believes the recently launched ONVO L90 and Nio ES8 models look competitive, and are expected to drive volume growth for Nio. Taking this into account, he increased the volume sales forecasts for 2025, 2026, and 2027 by 9%, 19%, and 21%, respectively.
Moreover, the analyst anticipates growth in Nio’s gross margin due to economies of scale. As a result, he expects Nio’s adjusted net loss to narrow significantly in the coming years and forecasts the company to turn profitable on an adjusted basis in 2027.
Nio’s Growth Picks Up Speed
NIO stock has gained over 75% in the past three months, backed by a rebound in vehicle deliveries and the launch of new models like the Onvo L90 and ES8 SUV. Also, the company’s battery swap technology continues to gain momentum as its cost flexibility attracts a wider consumer base.
Nio is also expanding into European markets, setting up Nio Houses, battery swap stations, and mobile services in places such as Germany and Norway. However, the company is still not making a profit, and rising competition and tariffs could slow its progress.
Is Nio a Buy, Sell, or Hold?
Overall, Wall Street has a Moderate Buy consensus rating on NIO stock, based on six Buys, four Holds, and one Sell assigned in the last three months. The average Nio stock price target of $5.90 implies 6.65% downside risk from current levels.
