NIO Shares Surge 8% as Morgan Stanley Reiterates "Buy" Rating and Lifts Price Target to RMB 5.90 Following Onvo L90 SUV Debut.

NIO Inc's shares surged 8% on Friday after Morgan Stanley reiterated its "Buy" rating and lifted the price target to RMB 5.90. The company's new Onvo L90 three-row SUV, priced at RMB 279,900, is expected to grab market share upon its Aug. 1 deliveries. Equipped with advanced features and fast charging capabilities, the L90 competes with premium rivals at a more competitive price point. Morgan Stanley's Tim Hsiao noted that the Onvo brand remains unfamiliar and must prove its delivery capabilities.

NIO Inc.'s shares surged 8% on Friday after Morgan Stanley reiterated its "Buy" rating and lifted the price target to RMB 5.90. The company's new Onvo L90 three-row SUV, priced at RMB 279,900, is expected to grab market share upon its Aug. 1 deliveries. Equipped with advanced features and fast charging capabilities, the L90 competes with premium rivals at a more competitive price point. Morgan Stanley's Tim Hsiao noted that the Onvo brand remains unfamiliar and must prove its delivery capabilities.

The Onvo L90, a full-size, all-electric, three-row crossover SUV, has up to 375 miles of range on a full charge. It is part of NIO's Onvo brand, which aims to compete with discount luxury EVs in the market. The SUV is priced at the lower end of the premium segment, making it an attractive option for budget-conscious buyers. Its features include 900V fast charging, AR-HUD, air suspension, and Nvidia Orin-X-based smart driving capabilities, which are typically found in higher-end models.

Morgan Stanley analysts view the L90 as a strong competitor in China’s crowded EV market, especially against similar 6-seater SUVs from Li Auto, Xpeng, and Xiaomi. However, they caution that the Onvo brand may still face hurdles due to weaker brand recognition and execution history. The launch comes amid intensifying competition in China's EV sector, with major players locked in a prolonged price war.

Despite the pricing pressure, NIO delivered nearly 25,000 EVs in June, marking a 17.5% year-over-year increase, signaling resilience amid fierce competition. As NIO expands its product lineup with the Onvo L90, market watchers will be closely monitoring its sales performance and ability to gain ground in China’s fast-evolving EV market.

References:
[1] https://finance.yahoo.com/news/why-nio-stock-keeps-going-172101150.html
[2] https://www.econotimes.com/Nio-Shares-Surge-After-Onvo-L90-SUV-Launch-and-Morgan-Stanley-Endorsement-1715788