While shares of Chinese electric vehicle maker Nio (NYSE: NIO) are rallying, Wall Street remains unconvinced about the company’s long-term outlook.
Over the past month, Nio shares have mostly traded in the green, closing the last session up more than 10% at $6.70. The stock has gained 38% in the same period.
The bullish momentum has been fueled by strong investor response to the company’s new ES8 flagship SUV. With a lower entry price of roughly $43,000 under its Battery-as-a-Service subscription, the model has boosted confidence in Nio’s strategy to capture a larger share of the EV market in China and Europe.
At the same time, Nio’s expanding battery swap network, now exceeding 3,400 stations in China and nearly 60 in Europe, has added further optimism, offering drivers a three-minute swap for a full charge.
Wall Street’s take on NIO stock
In terms of outlook, 10 Wall Street analysts tracked by TipRanks currently rate Nio stock a ‘Moderate Buy.’ The average 12-month price target is $5.01, implying a potential 25.22% downside from its latest close of $6.70.
The range spans a high of $8.10 and a low of $3, with a consensus of four ‘Buy,’ five ‘Hold,’ and one ‘Sell’ ratings.
On August 26, Morgan Stanley’s Nick Lai turned bullish on Nio, upgrading the stock to ‘Buy’ from ‘Hold’ and raising the price target to $8. Lai also placed the stock on “positive catalyst watch,” citing upcoming events such as the September 2 Q2 earnings report, Nio Day later that month, where final ES8 pricing will be confirmed, and the November Guangzhou Auto Show, where the new Onvo L80 SUV is expected to debut.
Meanwhile, Morgan Stanley analyst Tim Hsiao reaffirmed his ‘Overweight’ rating despite Nio’s 90% rally since June, maintaining a $6.50 price target. He pointed to strong pre-orders for the new ES8 SUV under the battery subscription plan, noting deposits may already have surpassed 30,000. While cautioning that actual demand hinges on conversions, Hsiao said momentum suggests the ES8 could replicate the success of the L90, potentially driving monthly sales of 40,000 to 50,000 units starting in October.
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