Morgan Stanley Maintains Buy rating on NIO Inc (NIO)

On May 26, Tim Hsiao from Morgan Stanley maintained a Buy rating on NIO Inc. (NYSE:NIO) while keeping the price target the same at $5.90. The reiterated bullish sentiment comes after the company released its new ET5 and ET5T with over 500 upgrades.

Analyst Tim Hsiao highlighted the new models launched by the company start at RMB 298,000, which is a price point maintained from 2024. The new models include significant advancements including the NX9031 smart driving chip, an upgraded display, and improved battery range. The analyst noted that these updated features along with the competitive price strengthen NIO Inc.’s (NYSE:NIO) market competitiveness against peers such as Xiaomi and ZEEKR. Hsiao believes the robust product offerings can potentially drive the company’s sales beyond previous peaks.

Moreover, NIO Inc. (NYSE:NIO) announced its April delivery update on May 1. The company delivered 23,900 vehicles during the month, up 53% year-over-year. On a year-to-date basis, the total deliveries reached 65,994 vehicles reflecting a 44.5% year-over-year increase. The company is set to release its fiscal first quarter results for 2025 on June 3. Earlier the management noted that it expects to achieve 36% to 43% year-over-year sales growth during Q1 2025.

NIO Inc. (NYSE:NIO) is a Chinese manufacturer of premium smart electric vehicles. It has a product line-up of electric SUVs and sedans including ES8, ES6, EC6, ET7, and others. The company is also engaged in battery-swapping innovation, self-driving technology, and other related technologies.

While we acknowledge the potential of NIO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NIO and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.