Bernstein Trims Nio’s Price Target to $4.00

Bernstein analyst Eunice Lee lowered on June 4, 2025, the price target on Nio to $4.00 (from $4.50) while maintaining a ‘Market Perform’ rating on the stock.

“Another weak quarter; Q1 earnings another miss.

NIO reported Q1 revenue of RMB 12.0bn (+21.5% yoy and-38.9% qoq). Q1 volume came in at 42.1k units, (+40.1% yoy and -42.1% qoq).

ASP further weakened to RMB 236.1k (-15.3% yoy and -1.8% qoq) on continuous ramp of ONVO, which represented 35% of NIO’s sales volume in Q1 25, and inventory-clearing promotions.

Gross margin was disappointing at 7.6% with vehicle margin deteriorated to 10.2% vs. 13.1% in Q4 24 on operating deleverage from lower production volumes.

Total opex arrived at RMB 7.3bn, or 61.0% of revenue.

R&D grew to RMB 3.2bn (+11.1% yoy and -12.5% qoq). SG&A reached 4.4bn (+46.8% yoy and -9.8% qoq).

Net loss widened to RMB 6.8bn, -56.1% net margin, compared to -52.3% in Q1 24 and -36.1% in Q4 24.

We rate NIO at Market-Perform with PT for NIO.US lowered to $4.00 (Old: $4.50) and for 9866.HK to HK$31.00 (Old: HK$35.00), on lower revenue estimates and lower EV/ sales multiple of 0.5x (Old: 0.7x).”

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