Nio Stock Receives Price Target Upgrade After Mixed Q2 Earnings

Nio's shares climbed 3% to $6.58 following the Chinese EV maker's second-quarter results, which revealed $2.65 billion in revenue—a 9% annual increase but below the $2.73 billion consensus. Adjusted earnings per ADS edged past expectations at $0.32 versus $0.31 estimates.

Mizuho Securities analyst Vijay Rakesh, ranked among TipRanks' top 10% of analysts, raised his price target to $6 from $3.50 while maintaining a Neutral rating. His track record shows a 60% success rate with average returns of 21.20% on recommendations.

Demand for Nio's ES8 and Onvo L90 models shows promise, with Q3 delivery guidance set at 89,000 units (44% YoY growth). However, achieving the annual target of 120,000–150,000 deliveries appears challenging at current monthly run rates. Gross margins held steady at 10%, reflecting persistent cost pressures in the competitive EV sector.