Nio’s new SUV launches and auto show could lift sales, according to JPM

Published 26/08/2025, 14:46
©  Reuters

Investing.com -- JP Morgan upgraded Chinese electric vehicle maker Nio to Overweight, saying demand for its new SUVs and a series of upcoming events, including Nio Day and the Guangzhou Auto Show, could boost sales and lift the stock further.

Nio shares have already risen 25% in August, outpacing Chinese auto peers, helped by pre-orders for its Onvo L90 and ES8 sport utility vehicles.

Both are priced competitively, with the company’s battery-as-a-service option cutting upfront costs by up to 30%.

JP Morgan said near-term developments could drive further gains like a final price announcement for the ES8 on Sept. 20 alongside Nio Day, second-quarter results on Sept. 2 that may prompt earnings upgrades despite continued losses, and the expected debut of the Onvo L80 five-seater SUV at the Guangzhou Auto Show in November.

The brokerage forecasts vehicle deliveries to rise 50% in 2025 and 47% in 2026 as Nio expands its line-up across the Nio, Onvo and Firefly brands.

It set a price target of $8, implying 31% upside.

Investors remain focused on the company’s path to profitability. Nio has guided to a potential turnaround in late 2025, but JP Morgan expects profits to materialize in the second half of 2026 if new models sell well and margins improve.

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