NIO Stock Surges 9% on New ES8 Electric SUV Launch

TLDR

Table of Contents

NIO stock surged 9.3% Thursday on new ES8 SUV announcement with September launch date
New three-row ES8 models priced lower than previous versions with enhanced features
Morgan Stanley analyst raised price target to $6.50 citing restructuring and Onvo demand
Pre-market trading showed 6.3% additional gains to $5.89, breaking $5.50 resistance
Company reports Q2 earnings September 2 after posting 21.5% Q1 sales growth

NIO stock rocketed 9.3% higher Thursday as the Chinese electric vehicle manufacturer unveiled its new ES8 SUV lineup. Shares closed at $5.54 after the company announced preorders for its latest three-row electric SUVs.

The new ES8 models will launch in September as the largest battery-powered SUVs in China’s market. NIO designed these vehicles with six-seat and seven-seat configurations. The company priced them lower than previous ES8 versions while adding performance upgrades.

On August 21, 2025, NIO’s Premium Flagship SUV, the All-New ES8, was officially unveiled and opened for pre-orders in China. The six- and seven-seater variants of the Executive Premium Edition are priced from RMB 416,800, or from RMB 308,800 with the battery subscription plan of… pic.twitter.com/EzQG3gJLig
— NIO (@NIOGlobal) August 21, 2025

Morgan Stanley Boosts Price Target

Morgan Stanley analyst Tim Hsiao raised NIO’s price target to $6.50. The analyst cited company restructuring efforts and strong demand for the Onvo brand. Hsiao reduced 2025 volume estimates but maintained 2026-2027 forecasts unchanged.

The analyst noted improved gross margins as another positive factor. This suggests NIO’s profitability metrics are heading in the right direction.

Pre-market trading Friday showed continued momentum. NIO shares climbed 6.3% to $5.89 before regular trading hours. This pushed the stock above the key $5.50 resistance level that had capped recent gains.

The technical breakthrough opens potential upside toward the $6.00 psychological level. Higher trading volume accompanied the price gains, indicating institutional interest rather than retail speculation.

Strong Recent Performance

NIO has gained roughly 40% over the past three months. Market capitalization now sits at approximately $12.4 billion. Year-to-date performance shows an 11.43% gain.

The company posted 21.5% year-over-year sales growth in the first quarter. New SUV models could help maintain this positive trajectory through the rest of 2025.

NIO will report second-quarter earnings on September 2 before market open. Investors will focus on delivery numbers and forward guidance. The ES8 launch timing aligns well with the earnings announcement.

Electric vehicle stocks have been attracting renewed investor interest. After months of sideways trading, the sector is showing signs of recovery. NIO appears positioned to benefit from this trend.

The ES8 SUVs target the premium family vehicle segment. Competitive pricing compared to previous models could drive higher sales volumes. Performance improvements may also attract buyers from other luxury SUV brands.

Average daily trading volume exceeds 52 million shares. Technical indicators are flashing buy signals as momentum builds. The stock’s current rally began with the new model announcement and analyst upgrade.

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