Morgan Stanley Reiterates Overweight Rating on NIO Inc. as the EV Maker Expects Higher Deliveries in Next Two Years

NIO Inc. (NYSE:NIO) is one of the Top 15 Chinese Companies on US Exchanges.

On January 27, Morgan Stanley reiterated its Overweight rating on NIO Inc. (NYSE:NIO), keeping the price target at $7. Morgan Stanley analyst Tim Hsiao reaffirmed his bullish stance on the Chinese EV maker following a meeting with NIO’s founder, William Li.

Hsiao remains positive on NIO, citing robust delivery growth plans, margin upside from new models, and long-term potential in autonomous driving. The analyst noted that, despite a competitive domestic market, management’s updated strategy now appears more focused than in recent quarters.

NIO Inc. expects its deliveries to grow 40-50% annually over the next two years, with 2026 volume estimated between 456,000 and 489,000 vehicles. New models such as the ES9, ES7, and Onvo L80 are expected to attract higher demand, with the ES9 in particular offering a potential profit engine at an average selling price of around ¥500,000. The estimated profit on ES9 is expected to be over ¥100,000 per vehicle.

NIO Inc. (NYSE:NIO) is a Chinese smart EV maker with deliveries around the world. The company offers five and six-seater electric SUVs and smart electric sedans.

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