Morgan Stanley reiterates Overweight rating on NIO stock, citing Onvo L90 launch
Investing.com
Published Jul 10, 2025 01:25PM ET
Investing.com - Morgan Stanley has reiterated an Overweight rating and $5.90 price target on NIO (NYSE:NIO) following the unveiling of the Onvo L90 SUV. Currently trading at $3.58, NIO's stock has seen analyst targets ranging from $3.01 to $8.18, according to InvestingPro data.
The Onvo L90 was introduced at a pre-sale price of Rmb279,900, or Rmb193,900 for customers choosing the battery-as-a-service option, with deliveries scheduled to begin August 1.
The large SUV features 900V charging capability, AR-HUD, air suspension, smart fridge, and L2+ smart driving features based on Nvidia (NASDAQ:NVDA) Orin-X with a vision-only solution.
Morgan Stanley notes the L90's interior space and specifications are competitive against other large 6-seater SUVs like Li Auto (NASDAQ:LI) L9, AITO M9, Lynk 900, and Denza N9, while its pricing matches sub-300k models such as Li Auto L6, AITO M7, XPeng (NYSE:XPEV) G9, WEY Lanshan, and Xiaomi (OTC:XIACF) YU7.
The firm acknowledges potential challenges for the model despite its competitive advantages, citing Onvo's "unsatisfactory track record of execution and inferior brand awareness" that may require additional effort to overcome. Get access to NIO's complete financial analysis and 10+ additional ProTips with a subscription to InvestingPro , including detailed insights into the company's operational efficiency and market position.
In other recent news, NIO Inc . reported delivering 24,925 vehicles in June, marking a 17.5% increase compared to the same month last year. For the second quarter of 2025, the company delivered a total of 72,056 vehicles, reflecting a 25.6% rise from the previous year. Goldman Sachs has upgraded NIO's stock rating to neutral, citing the company's cost reduction strategy as a key factor. The investment bank anticipates that these initiatives will enhance NIO's profit levels over the next three years. On the other hand, Bernstein SocGen and Barclays have lowered their price targets for NIO, following weaker-than-expected first-quarter earnings and delivery challenges. NIO's first-quarter revenue was RMB 12.0 billion, showing a 21.5% year-over-year increase but a 38.9% decline from the previous quarter. Macquarie also revised its price target for NIO, pointing to concerns about cash burn and increased competition in the market. Despite these challenges, NIO remains committed to achieving profitability by the end of 2025, with plans to reach a monthly production volume of 50,000 units.
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