NIO Inc. (NIO) Stock: New SUV Launch Drives 14% Weekly Gain

TLDR

Table of Contents

NIO stock closed at $4.39, down 0.23%, but gained 14.37% over the past week following the launch of the Onvo L90 SUV
The Onvo L90 features 900V fast charging and L2+ autonomous driving capabilities, though the brand has limited recognition
NIO secured RMB 3.3 billion ($1.9 billion) investment for its China operations in late September 2025
Company remains unprofitable with EPS of -$1.64 and faces margin pressure from aggressive competition
Analysts hold mixed views with consensus ‘Hold’ rating, though Morgan Stanley maintains ‘Buy’ rating

NIO Inc. closed at $4.39 on Friday, marking a 0.23% decline for the trading session. The stock saw unusually high volume with over 77 million shares changing hands, nearly double the typical daily average.

Despite the Friday dip, NIO stock has climbed 14.37% over the past week. The surge stems from investor excitement surrounding the company’s latest vehicle launch.

The Chinese electric vehicle maker introduced the Onvo L90 SUV, which includes advanced technology features. The vehicle comes equipped with 900V fast charging capabilities and L2+ autonomous driving technology.

Onvo L90 SUV for China – new photos
Onvo is a Chinese EV brand owned by NIO. The Onvo L90 is a 3-row 6-seat SUV.
We have new photos of several L90 SUVs at a media event, showing the new 5-spoke alloy wheels, the factory-standard cushions & pillows that turn the 240-liter frunk… pic.twitter.com/VkPk33r0fY
— Tycho de Feijter (@TychodeFeijter) June 30, 2025

After-hours trading showed some recovery with shares bouncing back to $4.46, representing a 1.59% gain. This brought the company’s market capitalization to approximately $9.2 billion.

Investment News Provides Cash Boost

In late September 2025, NIO received a major financial injection for its operations. Strategic investors provided RMB 3.3 billion, equivalent to about $1.9 billion USD, specifically for the company’s China unit.

Analysts view this investment as positive for addressing dilution concerns. The funding should also strengthen NIO’s cash position as it continues expanding operations.

The timing proves crucial as NIO works to establish its newer sub-brands in the competitive market. However, early performance has been mixed.

Performance Challenges Persist

The Onvo brand, including the L60 model, has drawn market attention but fallen short of expectations. Both sales figures and profit margins for 2025 have disappointed observers so far.

NIO’s broader financial picture remains challenging. The company posted an earnings per share loss of $1.64 and maintains a negative price-to-earnings ratio.

First quarter 2025 results showed a wider-than-expected loss. Revenue and delivery growth provided some bright spots in an otherwise difficult financial report.

The stock’s 52-week range spans from $3.02 to $7.71, highlighting the high volatility investors face. This price swing reflects both optimism about new products and concerns about profitability.

Morgan Stanley analyst Tim Hsiao maintains a ‘Buy’ rating on the stock. He points to the L90’s potential despite the Onvo brand’s limited market recognition.

Wall Street analysts overall show more caution with a consensus ‘Hold’ rating. Many see modest upside potential but recommend waiting for clearer entry points.

External pressures also weigh on the sector. The EU has imposed tariffs on China-made electric vehicles, which could hurt export prospects and overall market sentiment.

Competition remains fierce both domestically and internationally. Established brands and new entrants continue pressuring margins across the Chinese EV market.

NIO’s next earnings announcement is scheduled for September 3, 2025, when the company will report second quarter results and delivery updates.

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