logo
NIO stock surges over 4% after Morgan Stanley says Buy following new SUV Onvo L90 launch

NIO stock surges over 4% after Morgan Stanley says Buy following new SUV Onvo L90 launch

Time of Indiaa day ago
NIO Inc stock rose more than 4% in early trading Friday after Morgan Stanley reiterated its 'Overweight' rating on the electric vehicle maker, citing strong potential for the company's newly launched SUV, the Onvo L90, as per a report.
Why Did NIO Stock Surge?
The jump in stock price reflects growing optimism around NIO's bold push into the family-orientated EV market with the launch of its first three-row SUV under its new sub-brand, Onvo, according to an Invezz.com report.
Are Early Pre-Orders for the Onvo L90 Meeting Expectations?
The firm's executives revealed that pre-orders which started on July 10 for the newly unveiled SUV Onvo L90 have met internal targets, as per the ElectricVehicles.com report. Nio founder and CEO William Li said, 'Based on market feedback, we met our internal targets,' as quoted in the report. Li highlighted that, 'The key here is that we shipped the cars before holding the launch event,' as quoted in the ElectricVehicles.com report.
ALSO READ:
Wall Street veterans and analysts set bold new price for Nvidia — is it headed for another record run?
How Is NIO Balancing Features and Profit Margins With the L90?
The company did not specify the margin figures, but Li reiterated that the L90 was engineered for tight cost control, enabling competitive pricing without sacrificing margin, he said, 'It definitely has gross profit,' and also added that Onvo had reused existing seating platforms and avoided overpowered drivetrains to optimize costs, according to the ElectricVehicles.com report.
Live Events
Could the Onvo L90 Disrupt China's Competitive EV SUV Segment?
The Onvo L90 is priced at 279,000 yuan (around $39,000) for the 85 kWh version, while the battery-as-a-service (BaaS) model starts at 193,900 yuan ($27,000) and deliveries are scheduled to begin August 1, according to the Invezz.com report.
The electric SUV has premium features like the 900V fast charging, AR-HUD, air suspension, and Nvidia's Orin-X smart driving platform, which position it as a serious contender in China's crowded EV market, as reported by Invezz.com.
After the launch, Morgan Stanley analysts said that the competitive pricing and a feature-rich design of the Onvo L90 will likely attract strong demand, which will potentially drive NIO stock up to a new record of $5.90 over the next 12 months, according to the report.
ALSO READ:
Should H-1B Visa holders buy a house in the US amid job instability? A viral Reddit post sparks heated debate
Why Is Morgan Stanley So Bullish on NIO's Latest SUV?
The investment firm even praised the L90's ability to match or exceed rivals in interior space, smart driving capabilities, and charging infrastructure as it forecast another 45% upside in NIO stock from current levels, as reported by Invezz.com.
Are Other Wall Street Analysts Also Positive on NIO?
While Morgan Stanley is not the only Wall Street company that is being bullish on NIO stocks, the consensus rating on the EV stock also currently sits at 'overweight,' with the mean price target indicating a potential increase of over 15%, as per The Wall Street Journal.
FAQs
What makes the L90 different from other EVs in China?
It offers three rows of seating, cutting-edge smart tech, and fast charging, but at a price lower than many rivals, as per the report.
Why is Morgan Stanley so bullish on NIO right now?
They believe the L90 will sell well due to its features, pricing, and family-friendly design, which could boost the stock.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Xi's Price-War Campaign Creates a Buzz in China's Stock Market
Xi's Price-War Campaign Creates a Buzz in China's Stock Market

Mint

time3 hours ago

  • Mint

Xi's Price-War Campaign Creates a Buzz in China's Stock Market

For strategists at JPMorgan Chase & Co. and Goldman Sachs Group Inc. as well as money managers in Hong Kong and Singapore, an opaque term has suddenly emerged as the catchphrase for deciphering Chinese policy intentions and navigating the stock market. The term 'anti-involution' has cropped up in government documents over the past year, but gained prominence earlier this month when President Xi Jinping chaired a high-level meeting that pledged to regulate 'disorderly' price competition. It refers to efforts to root out China's industrial malaise, marked by cutthroat price wars and overcapacity that have hurt profitability in sectors ranging from solar, new energy vehicles to steel. Investors are hopeful that a more coordinated policy response to tackle the drivers of deflation is on its way, though Beijing hasn't yet released any plan. Analyst reports on the theme have flooded the market, while solar and steel stocks have rallied in July. Morgan Stanley strategists changed their preference to onshore shares from those in Hong Kong last week. 'One of the biggest issues that investors have investing in China is that of excessive competition,' said Min Lan Tan, head of the Asia Pacific chief investment office at UBS AG. 'It's actually a very positive development that top down the government is now recognizing it and directly saying that destructive competition has to stop. It's a powerful policy signal.' The Chinese term for involution, 内卷 , literally means rolling inwards. In practice, it's used to describe a system of intense competition that yields little meaningful progress. Huge spending on building capacity has helped Chinese firms enhance their global standing. The nation's companies now dominate every step of the solar supply chain, while its EV makers have toppled Tesla's dominance. Yet, ending destructive competition has rarely been more important. Producer deflation is worsening, and trade tensions mean China can no longer unleash some of its overcapacity to other countries. 'With foreign markets closing off Chinese trade routes, part of the competition is forced to return to the domestic market,' said Jasmine Duan, senior investment strategist at RBC Wealth Management Asia. The campaign seems to be helping improve investor sentiment for the mainland market, where policy drivers have a stronger sway and industrial stocks have bigger weighting. The onshore CSI 300 Index has risen 2% so far in July, outperforming the Hang Seng China Enterprises Index after lagging it for most of the year. Solar stocks Xinjiang Daqo New Energy Co. and Tongwei Co. have advanced at least 19% this month. Liuzhou Iron & Steel Co Ltd. has surged more than 50% while Angang Steel Co. has gained about 16%. Glass, cement and chemicals shares have also jumped. It's still early stages but if the reforms pan out, 'there'll be consolidation in China and there'll be slightly better pricing and margins, and there'll be better valuation,' said Wendy Liu, head of China and Hong Kong equity strategist at JPMorgan. Sectors that are likely to benefit include autos, battery, solar, cement, steel, aluminum and chemicals, she said. To seasoned China watchers, the current rhetoric recalls the supply-side reforms of 2015-2018, when a government-led push to cut outdated capacity in sectors such as coal and steel helped drive up prices in the following years. This time, however, key differences may limit the campaign's effectiveness. A decade ago, oversupply was mostly concentrated in upstream and construction-related sectors. It's become more pervasive today, encompassing the most promising industries of solar, EV and battery to downstream consumer sectors such healthcare and food. That point is illustrated by the intensifying price war among technology giants listed in Hong Kong — China's private sector leaders. Shares in Meituan, Alibaba Group Holding Ltd. and Inc. have slumped more than 20% from their March highs as they jostle for delivery market expansion. 'This time the overcapacity is concentrated in industries mostly dominated by private firms, so the challenges are going to be greater than when SOEs ruled and could just buy up the private firms and shut them down,' said Li Shouqiang, a fund manager at Shenzhen JM Investment Management. Addressing the supply-demand imbalance will also require measures to reflate the economy by boosting consumption — a tall order the government has struggled to deliver on. For now, investors seem hopeful that a bigger supply-side reform is in the offing. Morgan Stanley strategists said sentiment has improved with the government's message, and added they now prefer A-shares over offshore ones. 'When senior policymakers change some policy tone, there should be some actionable items or something to follow through,' said Louisa Fok, China equity strategist with Bank of Singapore. It won't be a quick overnight fix, but it's 'definitely positive' that the government is aware of the problems, she added. This article was generated from an automated news agency feed without modifications to text.

India's Rafale Jets now missile-proof? This country to provide ‘decoy system' that will protect it by…, the country is.., nightmare for Pakistan due to…
India's Rafale Jets now missile-proof? This country to provide ‘decoy system' that will protect it by…, the country is.., nightmare for Pakistan due to…

India.com

time18 hours ago

  • India.com

India's Rafale Jets now missile-proof? This country to provide ‘decoy system' that will protect it by…, the country is.., nightmare for Pakistan due to…

India's Rafale Jets now missile-proof? This country to provide 'decoy system' that will protect it by..., the country is.., nightmare for Pakistan due to... After Operation Sindoor, Pakistan has often claimed that it can shoot down India's Rafale fighter jets, but India has always strongly denied this claim. Now, a new move by India might make Pakistan even more worried. The Indian Air Force is planning to make Rafale jets safer by adding a special system called a 'decoy system.' This system will help protect the jets from enemy missiles, especially during missions deep inside enemy areas. For this, India has ordered the X-Guard Fiber Optic Towed Decoy System from Israel. This system can trick enemy radars and pull missiles away from the real jet, helping to keep the Rafales out of harm's way. Already tested on Rafale Jets According to reports, this decoy system has already been tested successfully on Rafale jets in India. However, due to supply issues and the ongoing tensions in the Middle East, there has been a delay in the delivery. Now, the Indian government is working hard to get this system as soon as possible. Once installed, it will be a huge boost to the safety and strength of the Air Force's Rafale fleet. When Economic Times asked the Indian Air Force about this, there was no official response. The Israeli company Rafael, which makes the system, also refused to comment.

How index-fund investing turned into an extreme sport
How index-fund investing turned into an extreme sport

Mint

timea day ago

  • Mint

How index-fund investing turned into an extreme sport

Peter Lynch, the former portfolio manager of Fidelity Magellan Fund, has long warned investors against what he calls diworsification: cluttering a portfolio with too many investments. I think many investors should worry instead about deversification. That's the opposite of diversification. Rather than spreading your bets, you concentrate them—and that can be dangerous. Deversification is sweeping through the world of exchange-traded funds. Investing in an ETF that tracks only a few stocks—or even just one—is a lot more exciting than holding an index fund that owns every stock in the market. It's also a lot riskier. Back in 1998, according to Daniel Sotiroff, a senior analyst at Morningstar, 85% of stock-index funds were weighted by capitalization. The biggest stocks had the heaviest representation, as in the S&P 500. By the end of 2024, only 40% of index funds were capitalization weighted. The median, or typical, index fund held 503 stocks in 1998, Sotiroff found. By May 2025, that had shrunk to 123 stocks. The more recently an ETF launched, the fewer stocks it tends to own. 'A lot of newer investments are taking on more risk than investors may realize," Sotiroff says. The irony is that many people worry about how concentrated the S&P 500 is in only a handful of huge tech companies. They then turn around and concentrate their own portfolios in an even riskier handful of stocks. Let's be clear: Bundling a limited number of stocks inside an ETF doesn't make them safe. The fewer stocks you hold, and the farther away from the overall market you move, the more extreme your returns are likely to become. Your potential gains are greater, but so are your losses. Between 1985 and 2024, the average stock suffered a maximum interim decline of 81%, and more than half never regained their previous highs, according to analysts Michael Mauboussin and Dan Callahan of Morgan Stanley. What's driving the wave of deversification? Fund managers want to earn higher fees than the pittance they can make running an S&P 500 or total stock-market index fund. And many investors are chasing higher returns—and more excitement than they can get from a traditional index fund—by focusing their bets and taking bigger risks. We now have ETFs that capture the returns of heating, ventilation and air-conditioning stocks; own convertible bonds issued by companies that hold bitcoin in their corporate treasury; use borrowed money to buy already leveraged loans; follow an index of small-to-midsize uranium stocks; track the future cost of transporting crude oil by sea; and replicate the performance of Icelandic stocks. Although some are actively managed, many charge fees 20 to 30 times higher than a traditional index fund. The ultimate in deversification is leveraged single-stock ETFs. They typically seek to double or triple the daily performance of only one stock. (A few aim to amplify the opposite of its return each day.) When these funds rolled out in 2022, they jacked up the returns of giants such as Apple, Microsoft or Tesla. 'Now we have gone far, far down the capitalization scale," says Todd Sohn, an analyst at Strategas Securities, 'toward much more volatile names." ETFs launched in the past couple months seek to double the daily returns of such tiny, hyper-risky stocks as electric-aircraft maker Archer Aviation, computing provider D-Wave Quantum, nuclear-power developer Oklo, voice-recognition company SoundHound AI and lending platform Upstart Holdings. In their brief lives, these funds have generated cumulative returns ranging from a 26% loss to a 226% gain. As of this month, more than 100 leveraged single-stock ETFs manage a total of more than $23 billion. So far, those funds constitute only about 0.2% of total ETF assets, according to Sohn. But their average daily trading volume has more than doubled in the past year, to nearly $9 billion. They aren't the only deversification danger. ETFs that don't use leverage and are linked to narrow market segments rather than a single stock are risky, too. ETFs tracking indexes of cannabis stocks lost more than 90% between 2019 and 2023. ETFs following solar-stock indexes have fallen more than 70% at least three times. Index funds that use such factors as equal weighting (tilting toward smaller stocks) or momentum (rapid price appreciation) have suffered deeper drops than the overall market. Nevertheless, money keeps pouring into quirkier index funds. Last year, $132 billion went into non-market-capitalization-weighted index funds, according to Morningstar. Another $25 billion flowed in during the first five months of 2025. When you buy a narrowly focused ETF, you're making an active bet on the direction of a particular market or asset. You've become deversified. And that can easily turn into speculation. Unlike many other pleasures, speculation isn't illegal, immoral or even fattening. Speculating on stocks also beats the lottery or casino, where your odds are even worse. It can be educational, engaging and just plain fun—for as long as the profits last. But it's putting you at risk. In fact, the more fun speculation feels, the more likely the profits are about to fizzle. If you must speculate, bear a few things in mind. First, amplifying the risk of single stocks can make you a ton of money when the market is going up. It will wipe you out when the market goes down. Limit your bets to a maximum of, say, 5% of your total assets. That way, you'll make a lot if you bet right but can't wreck your financial future if you turn out to be wrong. Finally, don't fall for the delusion that an ETF owning some but not all of the market is diversified. It's deversified.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store