TLDR
- NIO stock surged 8% following the launch of its new L90 SUV under the Onvo sub-brand on August 1
- The L90 is priced at RMB 265,800 ($36,940), over 5% lower than pre-sale levels to attract family buyers
- Macquarie analyst Eugene Hsiao upgraded NIO to Buy from Neutral, supporting the rally
- Company delivered 24,925 vehicles in June and 72,056 in Q2 2025, up 17.5% and 25.6% year-over-year
- NIO sees the L90 as key to achieving its first quarterly profit by year-end
NIO shares jumped 8% Thursday as the Chinese electric vehicle maker officially launched customer deliveries of its new L90 SUV. The six- or seven-seat electric SUV represents the flagship model for NIO’s new mass-market Onvo sub-brand.
The L90 carries a starting price of RMB 265,800, which translates to about $36,940 including the battery pack. This price point sits over 5% below the vehicle’s earlier pre-sale levels.
The pricing strategy appears designed to attract value-conscious family buyers in China’s competitive EV market. Management believes the L90 will still deliver positive gross margins despite the lower price point.
The company has set strict cost targets with suppliers to maintain profitability on the new model. NIO views the L90 as a critical step toward achieving its first quarterly profit by the end of 2025.
The stock rally gained additional momentum from a key analyst upgrade. Macquarie’s Eugene Hsiao moved NIO to Buy from Neutral, citing optimism around the Onvo rollout.
Morgan Stanley’s Tim Hsiao has also maintained bullish coverage with a Buy rating and $5.90 price target. Analysts view the Onvo brand launch as a major catalyst for the company.
Strong Delivery Numbers Support Growth Story
NIO’s recent operational performance has provided backing for investor optimism. The company delivered 24,925 vehicles in June, marking a 17.5% increase year-over-year.
Second quarter deliveries reached 72,056 vehicles, representing a 25.6% jump compared to the same period last year. These numbers demonstrate continued growth momentum despite competitive pressures.
The stock has gained over 40% in the past month as anticipation built for the L90 launch. NIO shares have climbed 11.7% year-to-date and nearly 20% over the past 12 months.
Trading data shows the stock hit $4.93 during Thursday’s session. The 52-week range spans from a low of $3.02 to a high of $7.71.
Mixed Financial Picture Remains Challenge
NIO’s financial health presents both strengths and concerns for investors. The company has demonstrated strong revenue growth in recent quarters.
However, NIO continues to operate at a loss, raising questions about its path to profitability. The company’s growth score sits at just 13.53 according to Benzinga Edge rankings.
Value metrics also present challenges, with a score of 32.52 suggesting the stock trades at expensive valuation multiples. The momentum score of 54.61 indicates moderate recent price strength.
Wall Street maintains a cautious stance on the stock overall. The consensus rating stands at Hold based on three Buy ratings, five Holds, and one Sell.
The average price target of $4.68 implies roughly 4% downside from current trading levels. This suggests analysts see limited upside despite recent positive developments.
NIO faces competition from domestic rivals including Li Auto and XPeng in China’s crowded EV market. The success of the L90 launch will likely determine whether the company can achieve its profitability goals.
Recent comments from Chinese President Xi Jinping have also highlighted concerns about uncoordinated investment in the EV sector. Despite these headwinds, investor focus remains on NIO’s growth trajectory as the Onvo brand begins deliveries.
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