Chinese EV maker Nio (NIO) rose more than 4% on Monday. The rally came as the company prepared to begin deliveries of its all-new ES8 SUV this weekend, while also gaining support from a broader pledge by Chinese EV makers to improve how they pay suppliers.
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Importantly, Nio’s ES8 SUV, a spacious three-row model, is seen as a direct response to Tesla’s (TSLA) recently launched Model Y in China. Tesla’s vehicle saw a strong start, gaining attention for its spacious design and strong performance.
New SUV Launch Drives Excitement
Nio’s ES8 is set to reach customers this weekend, giving the company new momentum in the premium SUV market. It is the largest battery-electric SUV in Nio’s lineup, offered in both six- and seven-seat versions, and is priced to compete directly with Tesla’s Model Y in China.
Investors see the launch as an important step for Nio. The company has faced stiff price competition this year, which has pressured sales and margins. A strong debut for the ES8 could help boost demand and give Nio a stronger position in the premium SUV market.
Supplier Payments Ease Industry Concerns
Nio stock also gained momentum from a joint pledge by Chinese automakers to pay suppliers within 60 days.
The move, backed by Nio and rivals such as Li Auto (LI) and BYD (BYDDY), is designed to ease financial stress in the supply chain and create a more stable operating environment.
Is Nio a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on NIO stock, based on six Buys, five Holds, and one Sell assigned in the last three months. The average NIO stock price target of $6.16 implies 5.08% downside risk from current levels.
