Nio Stock Soars Over 9% as New Flagship SUV Hits Showrooms
Early debut of its flagship ES8 electric SUV and a bullish analyst upgrade fuel investor optimism ahead of key earnings report.
Shares of Chinese electric-vehicle maker Nio Inc. surged more than 9% in trading Thursday, as investors reacted enthusiastically to the early showroom debut of its new flagship ES8 SUV and a notable price target increase from Morgan Stanley.
The primary catalyst for the rally was the company's decision to display the new three-row ES8 in over 300 retail stores across China ahead of its official launch in September. The vehicle, set to be the largest battery-based electric SUV in the Chinese market, is seen as a key product to bolster the company's position in the premium segment. According to reports, the new models are also significantly cheaper than previous versions, a strategic move aimed at spurring wider adoption.
Thursday's stock jump, which occurred on trading volume nearly three times the daily average, extends a strong run for Nio, with its shares now up approximately 40% over the last three months. The company is seeking to build on the 21.5% year-over-year sales growth it posted in the first quarter, and the new ES8 is central to maintaining that sales momentum.
However, the optimism is tempered by some underlying challenges. The company reported a decline in vehicle deliveries for July compared to the prior month and is scheduled to report second-quarter financial results on September 2, where analysts widely expect it to post another loss. While Morgan Stanley raised its price target to $6.50, other Wall Street firms remain more cautious, with Barclays maintaining an Underweight rating on the stock.
Investors will now be closely watching the upcoming earnings report and early sales figures for the ES8 to see if the new model's momentum can offset recent delivery softness and drive the company closer to profitability in a competitive EV landscape.