Credit: NIO

Morgan Stanley expects NIO to have an intense delivery schedule starting from August

Written by Cláudio Afonso | | LinkedIn | Twitter

Morgan Stanley analyst Tim Hsiao released on Friday a new note on NIO saying the gross margin of 18% during Q1 2022 “surprised the market on the downside” but sees a restore in investors’ confidence if the EV maker report between 11k and 13k vehicles delivered in June. Earlier this week, Morgan Stanley analyst reiterated the firm’s Overweight rating and $31 price target on NIO shares.

Hsiao wrote that the positive results would support the stock towards an “intense delivery schedule” starting from August. Although the gross margin below the expectations, the analyst sees the investors now focusing more “on volume trajectories”, as the company ramps its production. Morgan Stanley analyst also noted that “NIO ADRs are up 10% month-to-date despite a correction for other China ADRs”, that believes shares of leading EV startups will move “in tandem on a 12-18 month horizon and that NIO will reverse its position of being a laggard”.

“If the company can report a solid sales bounce of 11,000-13,000 [vehicles] in June, it should help NIO restore investor confidence and further support the shares ahead of an “intense delivery schedule” starting from August,” Tim Hsiao concluded.


NIO Europe Vice-President Hui Zhang was among the invited speakers at the fourth edition of MOVE that was held in London on 15-16 June, 2022. The topics covered by Hui Zhang were the power to enable electrification that comes with Battery-as-a-Service (BaaS) and NIO‘s Power Swap Stations.

Through a LinkedIn post, Hui Zhang enhanced NIO‘s expansion to another 4 European markets later this year (Germany, Sweden, The Netherlands and Denmark) and the company’s plan to have “at least 1,000 of our Power Swap Stations outside of China by 2025”.

On Thursday, NIO hosted a communication event with some NIO users in Hefei where they had the opportunity to ask the management team some questions. When answering about the Battery Swap Stations, NIO‘s CEO reiterated the company’s goal of achieving 1,300 Battery Swap Stations worldwide by the end of the year and the plan to have a plant to build these facilities in Europe.

As initially reported by EV on April 15, the EV maker started looking for a EU Plant Manager in Hungary last April. The company aims to produce Battery Swap Stations (BSS) and Charging Piles in Europe to avoid exporting costs from China. The position is located in Budapest (Hungary) suggesting that the company could build/ buy a factory there in the upcoming months and establish its European BSS production centre in the country.

Earlier this week, NIO hosted a product launch event where it unveiled a new medium five-seater SUV with an NT2.0 platform, NIO ES7. The model was rated a five-star safety of C-NCAP and Euro NCAP tests, a Cd of 0.263 and a tarting price of RMB 468,000 ($69,700 USD).

Written by Cláudio Afonso | | LinkedIn | Twitter