Nio’s New Onvo L90 SUV Boosts Stock by 6%

Hefei, China – Nio Inc., a prominent Chinese electric vehicle manufacturer, saw its stock rise over 6% on Thursday following the excitement surrounding its newly unveiled Onvo L90 SUV. Despite this increase, the company’s stock is down approximately 15% year-to-date due to ongoing delivery concerns and escalating competition in China’s electric vehicle market.

Analyst Tim Hsiao of Morgan Stanley maintained a Buy rating on Nio’s stock with a price target of $5.90, shortly after the launch of the Onvo L90 under Nio’s new sub-brand, Onvo. Pre-sales for the L90 began at RMB 279,900 (approximately $39,010), or RMB 193,900 ($27,020) with a battery-as-a-service (BaaS) plan.

Hsiao stated that the official pricing could be below market expectations of RMB 270,000 to RMB 280,000, which may help the vehicle gain traction in the competitive SUV segment. Deliveries for the L90 are scheduled to commence on August 1.

The L90 boasts high-end features, including 900V fast charging, an augmented reality (AR) head-up display, air suspension, a smart fridge, and Level 2+ autonomous driving powered by Nvidia’s Orin-X chip. Hsiao noted that the L90 is competitive with premium models from competitors but at a more attractive price point.

However, Hsiao did express concerns regarding brand recognition, stating that Onvo is still not well known. Demonstrating reliable performance will be essential for the brand to secure customer trust.

Wall Street currently holds a consensus Hold rating on Nio, with two Buys, seven Holds, and one Sell among recent analyses. The average price target of $4.40 suggests a potential upside of about 19.24% from current levels.

Nio’s stock recently climbed after hitting a five-year low of $3.02 in April, trading between $3.36 and $4.42 in recent months. Despite initial excitement over the L90 SUV, analysts are cautious due to past performance and competition in the market.