Morgan Stanley analyst Tim Hsiao reiterated on Wednesday the firm’s $31 price target on NIO shares while keeping an Overweight rating. The analyst believes the new model NIO ES7 and the upgraded versions of the older ones should “meet the market’s high expectations” and “underpin volume resurgence” in the second half of the year.
The analyst commented “The launch of the ES7, together with long-awaited upgrades to its SUV, should meet the market’s high expectations and underpin a 2H volume resurgence. Pricing is largely in line, but an intense delivery schedule in 3Q for its rich product pipeline will challenge NIO’s execution”.
BE THE FIRST ONE TO GET THE NEWS
“NIO officially launched ES7,a mid-sized five-seater SUV with prices ranging from Rmb468k to Rmb526k (with 75/100kWh battery packs) or Rmb398k (with BaaS), largely in line with market expectations. ES7 will adopt NIO’s second-generation E-Drive platform, 480kW dual-motor all-wheel-drive, and an aluminum-carbon fiber body, which enables the car to achieve a 0- 100km/h acceleration sprint time of 3.9 seconds and, with an energy boost from the 150kWh battery pack, estimated CLTC driving range can top 900km on a single charge,” Morgan Stanley added.
“The in-car experience is also meaningfully upgraded with the same second-generation digital cockpitused in ET7, powered by the Qualcomm 8155 chip. The preorder deposit for ES7 is the same as for ET5 at Rmb2,000, and deliveries are scheduled to start August 28,” Hsiao concluded.
The exhibition cars and test drives are expected to arrive Chinese stores in late July and the electric tow hook is expected to be available for optional installation in August, and its delivery will start as early as September 2022. The company gave no timeline for the arrival of the SUV to the European Market.
On the first day of June, NIO reported 7,024 vehicles delivered in May showing an increase year-over-year and also from the previous month, when delivered 5,074 units. On NIO App, William Li answered to customers and enthusiasts saying “Thank you all! We will continue to work hard in June”.