Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
Morgan Stanley analyst Tim Hsiao released a new research note on Nio commenting the April delivery results and the upcoming sub brand Onvo. Morgan Stanley has a price target on Nio shares of $10 implying an upside potential of 112 percent as of the release of the note.
“Nio‘s April sales increased 135% year-over-year and 32% month-over-month, to a year to date high of 15,620 units: This was a step closer to its previous peak monthly run-rate of 18-20k units,” the analyst wrote.
Hsiao said the 32 percent sequential increased sales is “likely driven by recent discounts, adjusted BaaS [battery as a service] offering”.
“SUV sales (ES6+ES7+ES8+EC6) rose 31% month over month, to 8.8k units, and sedan models were up 33% month over month, to 6.8k units. We saw weekly orders picking up more meaningfully last week, likely driven by recent discounts, adjusted BaaS offering, and, to a lesser extent, knock-on effect brought by Xiaomi SU7”.
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Morgan Stanley highlighted Nio’s recent public roll out of the Navigate On Pilot+ (NOP+) software to all the customers driving a car from the second generation platform NT2.0.
“NOP+ made accelerating progress: On April 30, Nio began rolling out the NOP+ driver assistance feature, available in urban areas, to all NT 2.0 platform-based vehicles. According to Nio, it has the longest verified mileage on the road, with more than 1.2mn kilometers covering 726 cities” in China.
“All eyes on upcoming mass-market brand: With steady recovery of the NIO core brand, investors are now willing to give attention to the launch of Onvo (Alps) in the third quarter of 2024. This should be a volume driver and make-or-break product,” the analyst concluded.
Nio shares gained 11.65 percent on Wednesday following the report of strong deliveries in April and a new incentive from the Shanghai government to replace old cars with electric or hybrid ones.
The Shanghai government introduced the “Shanghai Action Plan” until 2027 to incentivise the replacement of old cars with new energy vehicle (NEV) models.
The electric vehicle (EV) manufacturer unveiled the new facelift of its sedan ET7 during the Beijing Auto Show featuring upgraded seats and two second-row screens. The deliveries of the revamped model started yesterday, on the last day of April.
Nio is currently preparing for the brand — and product — launch of its first subbrand Onvo. The event is scheduled for mid-May as confirmed by the co-founder Lihong Qin at the Beijing Auto Show.
Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
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The post Morgan Stanley Reiterates 100% Upside Potential on Nio Shares first appeared on EV.