The Zhitong Finance App learned that Morgan Stanley released a research report stating that it will maintain the Ideal Auto (02015) “gain” rating and a target price of HK$68.5. The company launched the facelifted i6. The starting price remained unchanged at RMB 249,800, provided a listing discount of RMB 10,000, and was equipped with a number of important upgrades.

The bank believes that the relevant upgrades will help push iJune sales back to 15,000 to 20,000 units, compared to about 7,000 units in September. However, the pace of sales recovery will depend on battery and chip supply, as well as order conversion.

The bank also pointed out that although the initial gross margin may be low, replacing Nvidia chips with self-developed MACH M100 will help reduce costs, while i6 contributes significantly to overall sales, and higher chip usage can also drive economies of scale. However, while the price remains the same, larger batteries and additional configurations may initially offset some of the cost savings. The fourth quarter i6 gross margin and sales mix will be the key to evaluating the ideal automobile's long-term 15% gross margin target.

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