0656 GMT - NIO's 1Q margins and cost control were disappointing, says Morningstar senior equity analyst Vincent Sun in a note. Revenue rose 21% on year but missed the low end of guidance due to heightened competition, inventory clearance and changes in model mix. The company cited weak sales as a drag on margins, and its 10% vehicle margin came in below Morningstar's expectations. While there's significant upside if management delivers on guidance, the brokerage remains cautious about NIO's ability to grow sales and narrow losses. Morningstar cuts its fair value estimate to $5 from $5.60. The ADRs last closed at $3.75. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
June 05, 2025 02:56 ET (06:56 GMT)
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