NIO Inc. (NIO.SI) shares plummeted 3.21% in pre-market trading on Friday, as investors reacted to recent analyst downgrades and disappointing first-quarter results. The Chinese electric vehicle maker faces increasing pressure amid concerns about its financial performance and growth prospects.
Daiwa Capital Markets has cut its full-year earnings forecast for NIO, raising its 2025 net loss projection to CNY12.4 billion from the previously estimated CNY11 billion. Although Daiwa maintains a buy rating on NIO, it has lowered its target price for NIO's American Depositary Receipts (ADRs) to $8.10 from $10.00, citing weaker-than-expected first-quarter results.
Adding to the pessimism, Morningstar senior equity analyst Vincent Sun expressed disappointment in NIO's Q1 margins and cost control. Sun noted that while revenue rose 21% year-over-year, it still missed the low end of guidance due to heightened competition, inventory clearance, and changes in model mix. Morningstar has reduced its fair value estimate for NIO to $5 from $5.60, maintaining a cautious stance on the company's ability to grow sales and narrow losses. These analyst reports have likely contributed to the negative sentiment surrounding NIO's stock in early trading.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.