Macquarie Downgrades NIO (NIO) on Weak ONVO Demand and Policy Risks

NIO Inc. (NYSE:NIO) is one of the best EV charging stocks to buy now. On November 25, Macquarie downgraded NIO Inc. (NYSE:NIO) from an Outperform rating to Neutral. The firm also lowered the price target for the Hong Kong listing by 23% and 21% for the US listing. Macquarie stated that the weakening demand for ONVO, NIO’s mass market brand, which was partly occasioned by the phase-out of government subsidies, is the main reason for their action.

The analysts noted a “reduced visibility on China’s EV incentives,” which, as per their analysis, is creating policy risks that are expected to “weigh on volumes into 2026.” Add to that NIO’s delivery guidance for the fourth quarter (120,000–125,000 units), that missed earlier analyst expectations of 150,000 units. To the analysts’ knowledge, the disappointing guidance implies that sales volumes for November and December will likely remain flat.

On the same day and a few hours earlier, US Tiger Securities reaffirmed its Buy rating for NIO stock and kept the price target unchanged at $8. The firm described NIO’s third-quarter performance as “solid,” basing their positive stance on three main drivers: meaningful margin recovery, efficiency, and continued sales energy across NIO’s three distinct brands.

NIO Inc. (NYSE:NIO) is a Chinese premium EV manufacturer that has become a key player in EV charging infrastructure. The company operates an extensive network of over 3,200 Power Swap Stations and hundreds of fast-charging stations worldwide. This includes deployments along China’s expressways and recent expansions into international markets such as the UAE.

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Disclosure: None. This article is originally published at Insider Monkey.