Latest news with #TimHsiao
Bloomberg
20 hours ago
- Automotive
- Bloomberg
Morgan Stanley Sees $200 Billion Market For Self-Driving Cars by 2030
Morgan Stanley analysts forecast that the market for self-driving vehicles will hit $200 billion by 2030. Analysts Adam Jonas and Tim Hsiao say sales of autonomous cars with Level 2 and above autonomy will jump to 28% of unit sales by 2030 from 8% in 2024. But the analysts warn of China's advantage, writing: "An outsized EV user base and tech deflation have given China an early edge, but dominance of AI computing power and data are advantages that Silicon Valley firms and Germany's Big Three can use to boost their positions." Bloomberg News Auto Reporter Keith Naughton joins Bloomberg Businessweek to discuss. (Source: Bloomberg)
CNBC
a day ago
- Automotive
- CNBC
Morgan Stanley upgrades an under-the-radar China robotics play, sees big upside
Investors seeking to ride the robotics wave should consider buying Hesai Group, according to Morgan Stanley. The bank upgraded the U.S.-listed shares of the Chinese tech company to an overweight rating from equal weight. Hesai supplies LiDAR products such as sensors, which are then used in the robotics industry. Shares of Hesai have surged 54% this year. Analyst Tim Hsiao's new price target of $26 per share, up from $23, implies a further upside ahead of 22%. HSAI YTD mountain HSAI YTD chart "We raise our 2026-27 volume forecasts as Hesai continues to gain share amid growing LiDAR adoption in China," Hsiao wrote. "More overseas projects could enhance ASP/margin, while project wins from robo-players could also fuel a second revenue growth driver and lead to potential re-rating." In the Sunday note, Hsiao specified that one reason he was raising his volume forecasts was due to continuous domestic volume share gain. Hesai's volume share continued to rise among suppliers, reaching 37% in May 2025 versus 22% in May 2024. "Despite intensifying competition among Chinese EV players amid a challenging macro environment, LiDAR adoption continues to grow at an unprecedented rate, as more than 1 in 5 NEVs sold in China in May were equipped with LiDAR," Hsiao added. "With near-term headwinds — Li Auto's 2Q volume guidance cut, BYD's sluggish God's Eye model sales — largely reflected in Hesai's share price, we see further volume upside from Xiaomi, Leap Motor, as well as wallet share gain in BYD." The analyst also expects LiDAR adoption to rise as the adoption of L2+ smart driving rises overseas, with Hsiao predicting penetration to reach 15% to 20% in ex-China regions by 2030. Like the existing China market, Hsiao expects that by 2030, it could become a standard safety specification in any vehicles priced above $30,000. Another catalyst also comes in the form of a growing robotics business, he wrote. Potential products that could fit in this category include lawnmowers and humanoids. "We expect robotaxis and smart home robotic appliances to serve as Hesai's second revenue growth driver from 2026 onwards," he added. "In fact, we expect much higher ASP/margin profile from robotaxi players (given more LiDAR units per car), and a TAM of US$5bn for the humanoid/smart home robotics market."
Yahoo
21-07-2025
- Automotive
- Yahoo
Nio Just Launched a New SUV, and Wall Street's Paying Attention. Should You Buy the EV Stock Here?
Earlier this month, Morgan Stanley reaffirmed its 'Buy' rating on Nio (NIO), with the brokerage firm's $5.90 price target representing about a 30.5% premium to the stock's Monday close. The firm called the Onvo L90 launch a 'major catalyst,' with analyst Tim Hsiao writing, 'With all the pessimism in the price, we think the stock is like a call option" following strong pre-order momentum in Hong Kong. Morgan Stanley argues that the L90 offers 'aggressive specs' at a price point below ¥280,000, giving it an edge over both mid-range and premium rivals like the Li (LI) L9 or AITO M9. With standout features, a spacious interior, and the backing of Nio's expanding battery-swap and tech infrastructure, the L90 could be a game-changer if Onvo can overcome branding and execution hurdles. More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate This Penny Stock Wants to Become the MicroStrategy of Dogecoin Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For now, Morgan Stanley's team sees the low price as a buffer that may help turn investor doubt into fresh demand. About NIO Stock Based in Shanghai, Nio (NIO) is a leading designer and manufacturer of smart electric vehicles (EVs). It offers a range of electric SUVs and sedans, including five and six-seater models, along with innovative power solutions like Power Home, Power Swap, and other charging services. With a market cap of $9.16 billion, NIO stumbled early in 2025, falling to a low of $3.02 by April. However, stronger deliveries and operational gains have fueled a 32.5% rebound over the past month. In terms of valuation, NIO is priced at an enterprise value/sales ratio of 1.21, which is a 9% discount to the sector median of 1.32. This suggests NIO is priced competitively within its sector. Onvo L90: A New Family SUV at an Aggressive Price The Onvo L90 is NIO's newly unveiled three-row electric SUV under its mass-market Onvo sub‑brand. It launched in July 2025 at a starting price of RMB 279,900, including an 85 kWh battery, or RMB 193,900 under its Battery‑as‑a‑Service plan. This aggressive pricing undercuts competitors such as the Li Auto L9 (RMB 409,800) and entry models like the Li L6 and XPeng (XPEV) G9. Despite its value positioning, the L90 boasts premium features: 900V fast charging, an AR head‑up display, adjustable air suspension, an integrated smart fridge, and Level 2+ autonomous aids powered by Nvidia's (NVDA) Orin‑X chip. Its spacious cabin rivals those of higher‑priced six‑seaters like the AITO M9 and BYD (BYDDY) Denza N9. NIO aimed to control costs by reusing existing platforms and drivetrains without sacrificing quality. Preorders hit 30,000–35,000 within days, and NIO is dispatching early units to dealers for market feedback. A five-seat L80 and 400 new sales outlets are slated for late 2025. Record Deliveries Clash with Persistent Losses at NIO NIO managed a strong delivery performance in June, handing over 24,925 vehicles, its second-highest monthly total on record. That pushed Q2 deliveries to 72,056 units, up about 26% year-over-year. For the first half of 2025, the company delivered 114,150 vehicles, a 31% jump compared to the same period last year. Financially, the EV company posted Q1 revenue of $1.66 billion, representing a 21% year-over-year increase, but just shy of analyst estimates near $1.73 billion. Vehicle sales remained the primary revenue driver. Despite this miss, margins improved, with vehicle gross margin rising to 10.2% from 9.2% a year ago. Management reiterated its goal of reaching 20% gross margin for the core NIO brand and 15% for Onvo by late 2025, with profitability expected in Q4. 'We continue to invest in multi-brand expansion and cost efficiencies, and Q2 guidance reflects momentum in deliveries,' said CEO William Li on the earnings call. While free cash flow declined, the company ended the quarter with around $3.5 billion in cash and equivalents, giving it solid financial flexibility heading into the second half of the year. With nine new models planned for 2025 and a target of reaching operating profitability by year-end, NIO appears to be positioning itself for a strong turnaround. What Does Wall Street Think About NIO Stock? Most Wall Street analysts are not as bullish as Morgan Stanley, with the broader consensus rating on the stock at 'Hold.' In fact, even Hsiao, ahead of his bullish endorsement, wrote: 'Although we strongly recognize Onvo L90's advantages in the crowded race, beating market expectations isn't without challenges considering Onvo's unsatisfactory track record of execution and inferior brand awareness, which require extra effort for Onvo to leverage L90 and upcoming L80 to overcome the deficit.' NIO shares are currently trading above the average price target of $4.37, implying little to no expected upside over the next year. However, the 16 analysts in coverage have a wide range of targets, ranging as high as $8.10 - a 79.2% premium from Monday's close - to as low as $3, in line with the April year-to-date bottom. On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
16-07-2025
- Business
- Yahoo
Morgan Stanley Maintains a Buy on WeRide (WRD), Sets a $13 PT
WeRide Inc. (NASDAQ:WRD) is one of the best oversold NASDAQ stocks to buy now. Analyst Tim Hsiao from Morgan Stanley maintained a Buy rating on WeRide Inc. (NASDAQ:WRD) on May 22 and set a $13.00 price target. A pick-up and delivery truck speeding down a busy city street. The analyst based the rating on the company's potential in the autonomous vehicle market, maintaining an optimistic outlook on its long-term prospects despite near-term uncertainties in the robosweeper and robobus sectors. The analyst is particularly optimistic about the robotaxi segment, stating that WeRide Inc.'s (NASDAQ:WRD) continued expansion in China and recent project breakthroughs with Uber position it well to capitalize on its first-mover advantage in Level 4 autonomous driving. While Hsiao acknowledged that WeRide Inc. (NASDAQ:WRD) may see share price volatility in the short term, he stated that he sees considerable upside potential, especially as the focus of the market moves back to robotaxis. The firm reasoned that the unchanged expectations for robotaxis and the expected breakeven in 2027 further support the constructive rating. WeRide Inc. (NASDAQ:WRD) is headquartered in Guangzhou, China, and develops an autonomous driving technology platform. The company offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions. Its offerings also include smart services in online ride-hailing, environmental sanitation, on-demand transport, and urban logistics. While we acknowledge the potential of WRD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Automotive
- Yahoo
Why NIO Shares Are Soaring Today
July 11 Nio Inc (NYSE:NIO) shares surged about 8% on Friday after Morgan Stanley reiterated its "Buy" rating and lifted the price target to RMB 5.90, following the debut of its Onvo L90 three?row SUV. Warning! GuruFocus has detected 3 Warning Signs with NIO. The Onvo L90, Nio's first model under its Onvo sub?brand, opened pre?sales at RMB 279,900 or RMB 193,900 with the battery?as?a?service plan. Morgan Stanley's Tim Hsiao expects official pricing to land below RMB 280,000, helping the SUV grab market share upon its Aug. 1 deliveries. Equipped with 900V fast charging, an AR?HUD display, air suspension, a built?in fridge and L2+ autonomous driving powered by Nvidia's Orin?X chip, the L90 stacks up well against premium rivals like Li Auto's L9, AITO M9 and Denza N9 at a more competitive price point. Hsiao also noted the Onvo brand remains unfamiliar and must prove it can meet delivery targets. If Nio can build trust and deliver on performance, the L90, and the upcoming L80, may help reverse the company's year?to?date 15% share decline. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
