MORGAN STANLEY INCREASED ITS PRICE TARGET FOR NIO INC. (NYSE: NIO) TO $ 6.50 from $ 5.90 While Maintaing An Overweight Rating, Citing The Chinese Electric Vehicle Maker’s Ongoing Restructuring Efforts and Cost Reduction Initiatives That Are Narrowing Projected Losses.
ANALYST TIM HSIAO RAISED THE TARGET BY 10%with the investment bank’s SCENARY BASE VALUE RISING TO $ 6.60 While Bull-Case and Bear-Case Scenarios Incredased to $ 10.70 and $ 2.10 respectively. The Revisted Target Impies Approximately 28% Potential Upside From Nio’s Current Training Level Around $ 5.10.
Restructuring Drives Operational Efficienty
Morgan Stanley reduced STIs 2025 Operating Expense Estimate By 10%Reflecting Nio’s Aggresive Cost-Cutting Measures Including Headcount Reduce and Operational Streamlining. This adjustment has Narrowed The Bank’s net loss estimates by 8%, 13%, and 9% for 2025-27 respectively.
The Restructuring Efforts Demonstrate Management’s Focus on Achieving Profitability as The Ev Market Faces Increasing Competitive Pressure and Margin Compression. Nio’s Ongoing Cost Optimization Is Viewed as Critical for Long-Trm Sustainability in China’s Crowded Electric Vehicle Landscape.
Mixed Volume Outlook Reflects Market Reality
Morgan Stanley Trimmed ITS 2025 Volume Estimate By 9% to 330,000 UnitsACKNOWLEDGING WEAKER-THAN-Expected First-Half Performance. However, The Firm MAINTAED 2026-27 VOLUME PROJECTIONS AT 470,000 AND 586,000 UNITS respectively, indicating confidence in medium-term recovery.
The Analyst Expectos Solid Order Intake for Nio’s Onvo L90 Model to drive Meaningful Volume Recovery in 2026. The Six-Seat Suv Secured 30,000-35,000 Pre-Orders Within Four Days Of its pre-the epvent, Demonstrating Strong Consumer Interst in Nio’s Mass-Market Sub-Brand
Strategic Positioning Challenges
Child intensifying competition From domestic rivals including byd, Li Auto, and Xpeng, While Also Competing With International Brands Like Tesla in the Premium Ev Segment. The Company’s Battery-As-A-Service Model and Expanding Charging Infrastructure Differentiation But required Capital Investment.
Recent Delivery Data Showed 21,017 vehicles in JulyMarking a 16% decrease from june’s 24,925 unitsHighlighting the Volatility in Monthly Sales Performance That Characterizes The Rapidly Evolvering Chinese Ev Market.
Morgan Stanley’s Upgraed Target Reflects Cautious Optimism That Nio’s Restructuring Efforts Will Position The Company for Improved Financial Performance As Market Conditions Stabilize and New Product Launches Gain Traction In 2026.
