Nio unveiled the third-generation ES8 on Thursday, opening pre-sales of its revamped flagship SUV and announcing a lower than expected pre-sales price for the premium three-row model.
Citing a competitive pricing and the brand’s focus on developing a large three-row SUV, Deutsche Bank raised on Friday the price target on Nio’s Hong Kong-listed shares.
The price target increase comes two days after Morgan Stanley updated its model on Nio to reflect lower operating expenses and net losses. The firm lifted its target by 10% to $6.50.
The ES8 will be officially launched at the company’s annual event in September.
The SUV has a pre-sale price of 416,800 yuan ($58,030), including a 102-kWh battery pack, about 25% below the previous 100-kWh version priced at 556,000 yuan.
Under the battery-rental BaaS plan, the starting price is 308,800 yuan, compared with 428,000 yuan for the earlier model with the same pack.
Deutsche Bank said in a new research note on Friday that it expects the final launch price to fall further to around 399,000 yuan.
Sentiment has improved as the company introduced two lower-priced models in recent weeks, reiterated its target to turn profitable in the fourth quarter of 2025, and reported progress in stabilising supply chains at its Firefly and Onvo sub-brands.
The pre-launch came as Nio’s US-listed shares climbed to a ten-month high, extending a rally that has lifted the stock by nearly 90% since April, when it hit a five-year low of $3.02.
Adding to the momentum, Deutsche Bank on Friday raised its price target for Nio’s Hong Kong-listed shares from HK$71 to HK$75, citing stronger-than-expected demand for the new ES8.
In Hong Kong, the stock closed 11.1% higher on Friday at HK$45.76, meaning Deutsche Bank’s new price target implies an upside potential of nearly 64%.
As of press time, during Friday’s pre-market session, Nio shares were extending the gains and trading 6.3% higher at $5.89 in New York.
The bank estimates average monthly sales to be about 3,000 units, given the size of the model and its competitive pricing.
Nio’s management has pointed to rising output at its sub-brands as another support for sales in the coming months.
Onvo chief Shen Fei said this week that factories are running at full capacity for both the new L60 and L90, while Firefly executives suggested the brand could set a delivery record in August.
Li told reporters last week that Nio was moving “from years of heavy investment into a harvest period.”
