Citi said Nio’s newly launched Onvo L90 SUV appears to offer better value and user satisfaction than rival models such as Li Auto’s i8, and could outperform market expectations in monthly sales.
In a note to clients published early Friday, Citi analyst Jeff Chung forecasted a monthly run-rate for the L90 of between 8,000 and 9,000 units — slightly ahead of the current consensus.
The bank attributed the strong outlook to the vehicle’s “attractive pricing and rich interior features.”
With a starting price of 265,800 yuan ($36,900) when purchasing it with the battery pack and just below $25,000 when leasing it, the Onvo L90 undercuts the Li Auto i8 by more than 55,000 yuan — equivalent to $7,600.
The i8 SUV was launched earlier this week with a higher-than-expected starting price, which led to a 8% drop in the company’s US-listed shares.
Citi called the model “a clear standout among large battery-electric SUVs in China,” and reiterated its ‘Buy’ rating on Nio with a target price of $8.10.
As of the time of writing, Nio shares are trading 2.20% lower at $4.76 during Friday’s pre-market session. Based on the current stock price, the target implies an upside potential of about 70.2%.
Nio began delivering the L90 in 44 cities across China earlier this Friday, with top management delivering in person the first units to customers.
“Today, we kicked off the very first ONVO L90 deliveries!” founder and CEO William Li wrote on X.
“Delivery-on-launch is live in 44 cities nationwide. I’m now at our delivery center in Xiaoshan, Hangzhou, handing over keys to 21 families. Full of enthusiasm here,” he added.
The company expects Onvo to deliver 25,000 units per month in the fourth quarter, contributing significantly to its reiterated goal of breaking even in Q4.
According to a message shared by the ‘Nio Beijing Club’, a user community of the automaker, the first batch of vehicles sold out in under three hours.
A social media user who attended the launch event, posting under the name Cnevhome, said Onvo had roughly 10,000 units in stock at the time.
Nio, Onvo and Firefly will report their July delivery figures later this Friday.
The EV maker will unveil its revamped three-row SUV ES8 later this month with the official launch planned for the annual event ‘Nio Day’ in late September.
