Morgan Stanley Raises Nio’s Price Target to $6.50
Morgan Stanley analyst Tim Hsiao raised on August 20, 2025, the price target on Nio to $6.50 (from $5.90) while maintaining an ‘Overweight’ rating on the stock.
“We mark-to-market and reduce our 2025 volume estimate by 9% to 330k units to reflect a weaker-than-expected 1H25.
That said, our 2026-27 volume estimates are largely unchanged at 470k and 586k units, respectively, as we expect the solid order intake of Onvo L90 to underpin more meaningful volume recovery in 2026.
Our 2025 gross margin estimates are largely unchanged while we tweak our 2026- 27e up by 0.2ppt to reflect product mix shifts.
We lower our opex estimate for 2025 by 10% to reflect ongoing restructuring efforts and headcount reduction.
Our net loss estimates narrow by 8%, 13% and 9% in 2025-27, respectively, while our net loss per share changes similarly.
Consequently, our base-case scenario value rises 10% to US$6.60, while our bulland bear-case scenario values rise 11% to US$10.70 and US$2.10, respectively.
Our WACC and terminal growth assumptions are unchanged.
Using our probabilityweighted DCF valuation methodology (weightings are unchanged), our price target is up 10% to US$6.50.”
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