5 days ago
NIO stock surges over 4% after Morgan Stanley says Buy following new SUV Onvo L90 launch
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 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 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 report.
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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 report.
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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 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
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.
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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
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.
