Shares of NIO-SW (09866) climbed more than 4% during Thursday's trading session, with the stock last seen at HK$29.12, representing a 4% gain and turnover of HK$81.77 million.

According to a research note from Morgan Stanley, management at the electric vehicle maker reiterated its priority of driving profitability through sales volume growth and operational leverage, while also reaffirming the target of achieving non-GAAP adjusted profitability this year. The company further anticipates stabilizing vehicle gross margins at approximately 18% through enhanced operational efficiency.

Morgan Stanley believes the balance sheet funding pressure for the company has now been eliminated, projecting cash and equivalents to exceed RMB 60 billion in the third quarter, rising above RMB 70 billion next year. The battery-swapping business is expected to approach breakeven within three years.

UBS noted that while competition in China's domestic auto market remains fierce, rising consumer purchasing power continues to underpin resilience in the premium pure-electric vehicle segment. This year, NIO has leveraged its brand loyalty and premium positioning to become one of the few marques achieving both year-on-year sales growth of over 50% and higher average selling prices, while maintaining monthly deliveries above 10,000 units even six months after new model launches. The bank views the upcoming product portfolio refresh as the core growth catalyst for the company going forward.