Bernstein Raises Nio’s Price Target to $5.50

Bernstein analyst Eunice Lee raised on September 3, 2025, the price target on Nio to $5.50 (from $4.00) while maintaining a ‘Market Perform’ rating on the stock.

“Yet to be convinced on profit breakeven; Q2 results were mixed—missed on ASP and vehicle margin, but Opex cuts came in ahead of expectations.

NIO reported Q2 revenue of RMB 19.0bn (+9% yoy and +58% qoq).

Q2 volume came in at 72k units, (+26% yoy and +71% qoq).

ASP declined further to RMB 224k (-18% yoy and -5% qoq) due to the ramp-up of the lower-priced Firefly model (11% of sales) and increased discounts on other models including ET5/ET5T and ES6/EC6.

Gross margin was weak at 10.0%, with vehicle margin flat at 10.3%, vs. 10.2% in Q1 25, despite improved scale.

Opex were RMB 6.8bn, or 36.7% of revenue.

Opex totaled RMB 6.8 bn (36% of revenue), with R&D costs reduced to RMB 3 bn (16% of revenue), and SG&A expenses at RMB 4 bn (21% of revenue).

Net loss narrowed to RMB 5 bn, improving from RMB 6.8 bn in Q1 25, though similar to Q2 2024.

Overall, cost controls were effective, but margin pressure from lower ASP and discounts persisted.”

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