Nio Inc. (NIO) shares have recently sparked some excitement among investors. The stock jumped about 8% yesterday after the Chinese EV maker launched its new flagship SUV under the Onvo sub-brand. The rally gained further traction after Macquarie’s Top analyst Eugene Hsiao upgraded the stock to Buy from Neutral. The stock is now up 11.7% so far in 2025 and has climbed nearly 20% over the past 12 months.
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All Eyes on L90 as Nio Aims for First-Ever Profit
Launched under Nio’s new Onvo sub-brand, the L90 is a six- or seven-seat electric SUV that starts at RMB 265,800 (about $36,940), including the battery pack. The price is over 5% lower than its earlier pre-sale level, indicating Nio’s push to win over value-conscious family buyers. Despite the lower price, management believes the L90 will still deliver a positive gross margin, thanks to strict cost targets set with suppliers.
The company also believes the new model could drive strong sales and sees the L90 as a key step toward achieving its first quarterly profit by year-end.
It’s important to highlight that NIO’s financial health presents a mixed picture. Though the company has shown strong revenue growth, it continues to operate at a loss, raising questions about its long-term path to profitability.
With high hopes riding on the L90, Nio’s push for profitability now hinges on whether the new SUV can deliver both sales and margins.
Is Nio a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on NIO stock based on three Buys, five Holds, and one Sell assigned in the last three months. The average NIO stock price target of $4.68 implies 3.90% downside potential from current levels.
