Key Points
Nio reported second-quarter vehicle sales rose about 50% year over year.
Nio reported a narrow first-quarter loss of under $50 million.
Profitability looks to be close with new luxury SUVs selling well.
Electric vehicle (EV) maker Nio (NYSE: NIO) has been increasing vehicle sales and approaching profitability. Now, a Wall Street upgrade has the stock surging today.
Analysts at Goldman Sachs upgraded Nio to a "buy" from "hold" and set a price target of $7. At 11:25 a.m. ET, Nio's American depositary shares traded at $4.96 per share, up 3.7%. Goldman's target price is 46% higher than where Nio stock closed on Friday.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: The Motley Fool.
Anticipating a profitable 2027
Nio has reported strong EV sales so far this year, despite strong competition in both China and Europe. The latest design for its flagship ES8 luxury electric SUV has been well-received, and its ES9 set a new initial 30-day delivery record among luxury EVs sold in China at its premium price level above about $73,000.
That has led analysts to predict strongly growing revenue and its first full-year positive operating profit in 2027. Today, the stock jumped after Barron's reported Goldman's recommendation and price target.
Nio was off to a good start in Q1 with just a $48 million net loss. If the company reports a break-even profit this year, it will represent a meaningful improvement from 2025, and investors may begin to jump into the stock. That likely explains Goldman's optimistic price prediction for Nio stock. Investors should remain cautious, though, as the market is crowded, and volatility will most certainly persist as Nio works toward sustained profitability.
Howard Smith has positions in Nio. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.