NIO Inc. (NIO) Stock Rallies on Game-Changing Electric SUV Launch

TLDR

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NIO stock rose over 6% Thursday following the launch of its new Onvo L90 SUV, with Morgan Stanley maintaining a Buy rating and $5.90 price target
The Onvo L90 is priced at RMB 279,900 ($193,900 with battery-as-a-service plan) and includes premium features like 900V fast charging and AR-HUD display
June 2025 deliveries reached 24,925 units, representing a 17.5% year-over-year increase and contributing to positive momentum
Wall Street consensus remains Hold with average price target of $4.40, implying 19.24% upside potential from current levels
Stock closed at $3.90 and gained another 4.62% in after-hours trading to $4.08

NIO stock surged over 6% Thursday as investors responded positively to the Chinese automaker’s latest product launch. The electric vehicle maker unveiled its new Onvo L90 SUV under its fresh sub-brand, sparking renewed interest in the company’s prospects.

Morgan Stanley analyst Tim Hsiao reiterated his Buy rating on NIO with a $5.90 price target following the launch. The stock closed at $3.90 and continued climbing in after-hours trading, reaching $4.08 for an additional 4.62% gain.

The company opened pre-sales for the Onvo L90 at RMB 279,900, or RMB 193,900 with the battery-as-a-service plan. Hsiao noted that official pricing could come in below market expectations of RMB 270,000-280,000, which might help the model gain traction in China’s competitive EV market.

$NIO Strikes Back: #Onvo #L90 Undercuts Rivals With Aggressive Pricing and Lightning-Fast Delivery
NIO is taking a direct shot at Li Auto with the launch of its Onvo L90 electric SUV. Priced from just RMB 279,900 (about 39,000 USD) with the 85kWh battery pack, and as low as RMB… pic.twitter.com/my9IM2GwV5
— jan dekkers (@jan_dekkers) July 13, 2025

The three-row SUV comes loaded with premium features including 900V fast charging, AR-HUD display, air suspension, and a smart fridge. The vehicle also includes L2+ autonomous driving powered by Nvidia’s Orin-X chip.

Strong Delivery Performance Boosts Confidence

June 2025 vehicle deliveries reached 24,925 units, marking a 17.5% year-over-year increase. These robust delivery figures contributed to the positive momentum in NIO’s share price over the past week.

The stock has risen more than 11% over the past seven days, reflecting renewed investor confidence. However, NIO remains down about 15% year-to-date as the company continues to face delivery concerns and rising EV competition in China.

Competitive Positioning in Crowded Market

Hsiao believes the L90 compares favorably to premium models like Li Auto’s L9, AITO M9, and Denza N9, while offering a more competitive price point. The analyst highlighted that the L90’s pricing positions it directly against more affordable six-seater SUVs like the Li Auto L6, XPeng G9, and Xiaomi SU7.

This positioning could help the vehicle appeal to a broader range of buyers in China’s price-sensitive market. The company plans to begin deliveries on August 1, giving investors a relatively short timeline to assess initial market reception.

However, Hsiao raised some concerns about the brand’s market position. He noted that Onvo remains relatively unknown and hasn’t yet proven its ability to deliver consistently.

The analyst emphasized that winning customer trust and demonstrating solid execution will be crucial for the L90’s success. The same factors will be important for the upcoming L80 model as well.

Despite these challenges, Hsiao remains optimistic about the Onvo models’ potential to help NIO regain momentum. He believes success depends on the company’s ability to perform well in a market where buyers carefully weigh both price and value.

Wall Street maintains a Hold consensus rating on NIO stock based on two Buys, seven Holds, and one Sell assigned in the last three months. The average price target of $4.40 implies 19.24% upside potential from current levels.

The stock trades within a 52-week range of $3.02 to $7.71, with a market cap of approximately $8.18 billion. NIO’s next earnings announcement is scheduled for September 3, 2025.

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