Morgan Stanley Expects Record Q3 Sales for Nio Amid Strong Demand for Onvo L90 SUV

Morgan Stanley predicts Nio will report record Q3 sales guidance, with expected deliveries of 78,000 to 80,000, a 8.3%-11.1% growth from Q2. The investment bank also expects revenue of around $2.71 billion to $2.90 billion, a year-over-year growth of up to 20.3%. Despite a net loss of $3.15 billion in 2024, Morgan Stanley expects the Q3 net loss to narrow to around $766 million.

Morgan Stanley has forecasted that Nio will guide for record third-quarter deliveries, with expected vehicle volumes ranging from 78,000 to 80,000 units. This represents an 8.3% to 11.1% quarter-over-quarter growth, following the 72,000 to 75,000 vehicles delivered in the second quarter [1].

The investment bank also anticipates revenue of around $2.71 billion to $2.90 billion for the quarter, indicating a year-over-year growth of up to 20.3%. Despite a net loss of $3.15 billion in 2024, Morgan Stanley expects the Q3 net loss to narrow to approximately $766 million [1].

The report highlights the strong backlog of orders for Nio's Onvo L90 model, which is expected to contribute significantly to the company's third-quarter performance. Despite ongoing production challenges, the "solid backlog" is seen as a positive indicator for future sales [1].

Nio's restructuring efforts, including cost reductions and strategic product launches, are also cited as factors that could drive growth. The company recently announced price cuts on several models to compete with Tesla's offerings, and the launch of the revamped ES8 SUV is expected to further enhance its product portfolio [4].

While the market sentiment remains mixed, Morgan Stanley's optimistic outlook reflects confidence in Nio's strategic direction and the potential for sustained demand for its new models. The upcoming second-quarter earnings report, scheduled for September 2, is expected to provide further insights into the company's operational progress and delivery trends [4].

References:
[1] https://eletric-vehicles.com/nio/morgan-stanley-expects-nios-record-q3-sales-guidance-backed-by-l90-strong-backlog/
[4] https://www.ainvest.com/news/nio-stock-gains-morgan-stanley-ups-price-target-strong-onvo-l90-demand-2508/