TLDR
- NIO stock jumped 9.3% Thursday following announcement of new ES8 SUV line launching in September
- New three-row ES8 models will be cheapest in the line while offering performance improvements
- Morgan Stanley raised price target to $6.50 citing restructuring efforts and strong Onvo brand demand
- Stock continued climbing 6.3% in pre-market trading to $5.89, breaking key $5.50 resistance level
- NIO posted 21.5% year-over-year sales growth in first quarter with second quarter results due September 2
NIO stock rocketed higher Thursday as the Chinese electric vehicle maker unveiled its latest SUV lineup. The stock closed up 9.3% at $5.54 after the company announced its new ES8 three-row SUVs.
The new ES8 models represent NIO’s push into the larger SUV segment. These vehicles will become the biggest battery-powered SUVs in the Chinese market when they launch next month.
NIO opened preorders for the ES8 line Thursday. The SUVs come in six-seat and seven-seat configurations. Both versions are priced lower than previous ES8 models while delivering better performance and features.
The timing appears strategic for NIO. The company reported 21.5% sales growth in the first quarter compared to the same period last year. New SUV models could help maintain that momentum.
Analyst Optimism Builds
Morgan Stanley analyst Tim Hsiao raised NIO’s price target to $6.50. The analyst pointed to the company’s restructuring efforts as a positive factor. Hsiao also highlighted strong demand for NIO’s Onvo brand.
The analyst reduced 2025 volume estimates but kept 2026 and 2027 forecasts unchanged. This suggests confidence in NIO’s longer-term prospects. Improved gross margins also contributed to the bullish outlook.
Pre-market trading showed continued strength Friday. NIO shares climbed 6.3% to $5.89 before regular trading began. This extended the previous day’s gains and pushed the stock above a key technical level.
The $5.50 price point had been acting as both support and resistance recently. Breaking above this level opens up new potential upside targets. Traders are now watching the $6.00 psychological level.
Technical Momentum Gathering Steam
Volume patterns support the recent price action. Higher trading volume accompanied the gains, which technical analysts view as confirmation. This suggests institutional buying rather than just retail speculation.
The broader EV sector appears to be regaining investor interest. After months of sideways trading, electric vehicle stocks are attracting fresh capital. NIO seems to be benefiting from this sector rotation.
Three-month performance tells the story of NIO’s recent turnaround. The stock has gained roughly 40% over that period. Market capitalization now stands at approximately $12.4 billion.
Pre-market strength often indicates genuine buying interest. When gains carry over from the previous session, it typically signals conviction behind the move. This pattern suggests the rally could have staying power.
NIO will report second-quarter earnings before markets open on September 2. The results could provide another catalyst for the stock. Investors will be watching delivery numbers and guidance closely.
The ES8 launch timing aligns well with the earnings announcement. Strong preorder numbers could boost investor confidence heading into the quarterly report.
Current year-to-date performance shows NIO up 11.43%. Average daily trading volume sits at over 52 million shares. Technical sentiment indicators are flashing buy signals.
