Morgan Stanley Optimistic After Nio’s December Sales

By Michael Elkins

Morgan Stanley has reaffirmed an Overweight rating with a price target of $16.10 for Nio following the electric vehicle manufacturer’s December sales, which saw a 12% month-over-month and 51% year-over-year increase, achieving a record of 15,815 units. The NT2.0 models played a significant role in this success, accounting for approximately 83% of total deliveries, while the NT1.0 saw a 14% month-over-month decline, totaling 2,688 units.

The ET5 deliveries also rose in December, reaching around 7,600 units despite ongoing supply chain challenges linked to COVID disruptions. Total vehicle deliveries for the fourth quarter hit 40,000 units, marginally surpassing the company’s lowered guidance of 38,500-39,500 units.

Nio is expected to introduce its ES8 and EC7 models in the first half of 2023. Morgan Stanley anticipates that these new additions, combined with the existing ES7 and ET7 models, will enhance NIO’s product range in the RMB450,000-600,000 price segment.

NIO shares experienced a 3.28% increase in premarket trading on Tuesday.