NIO Shares Plummet 5.37% Despite Analyst Optimism Trading Volume Slumps to 135th in Market Activity

NIO shares fell 5.37% on August 27, with a trading volume of $580 million, a 40.84% decline from the previous day, ranking 135th in market activity. The stock’s performance follows recent analyst activity and product developments.

Analysts have shown increased optimism about NIO’s prospects. JPMorgan upgraded the stock to Buy with a price target of $8, citing potential growth from expanded product lines and improved consumer sentiment. The firm highlighted NIO’s three-row ES8 SUV launch, aggressive pricing strategies, and the Onvo L90 SUV’s market reception as catalysts. Morgan Stanley also raised its price target to $6.50, though it adjusted its 2025 delivery forecast downward to 330,000 units amid weaker first-half performance.

Investor sentiment has been bolstered by NIO’s product pipeline and strategic positioning. The ES8 SUV’s pre-order launch and competitive pricing against Tesla’s Model Y L are seen as critical to boosting deliveries. Upcoming events, including Q2 earnings on September 2, Nio Day in late September, and the Guangzhou Auto Show in November, are anticipated to drive further momentum. However, delivery growth and margin recovery remain key uncertainties.

Backtests of historical data indicate mixed outcomes for similar market scenarios. While product launches and analyst upgrades often correlate with short-term gains, sustained performance depends on execution against delivery targets and cost management. Current Wall Street consensus reflects a Moderate Buy rating, with an average price target of $5.01 implying potential downside from current levels.