NIO Should I Buy
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Given the user's long-term investment preference and beginner status, NIO does not currently present a strong buy opportunity. While there are positive developments in its intelligent driving chip business and partnerships, the company's financial performance and declining demand for some models raise concerns. Additionally, technical indicators and options sentiment suggest a neutral to slightly bearish outlook in the short term. It is advisable to monitor the stock for further developments, especially after the upcoming earnings report.
The MACD is positive but contracting, RSI is neutral at 52.836, and moving averages are converging. The stock is trading near its pivot level of 5.09, with key resistance at 5.315 and support at 4.865. Overall, the technical indicators suggest a neutral trend with no clear upward momentum.
NIO's subsidiary GeniTech secured a $329.765 million investment to boost its intelligent-driving chip business. The company also maintains a controlling stake in Shenji, which received significant investment to strengthen its chip business. Additionally, the company's flagship ES8 model remains strong in deliveries.
Declining demand for some models and a JPMorgan analyst's lowered price target to $7 due to falling sales volumes and weaker margins. The company also reported a significant YoY drop in net income and EPS in Q3 2025.
In Q3 2025, revenue increased by 16.71% YoY to 21.79 billion RMB. However, net income dropped by 28.80% YoY to -3.66 billion RMB, and EPS fell by 39.60% YoY to -1.51. Gross margin improved to 13.88%, up 29.12% YoY.
Analysts have mixed views. JPMorgan lowered its price target to $7, citing weaker margins and sales volumes, while Freedom Capital initiated coverage with a Buy rating and an $8.70 price target. H.C. Wainwright raised its price target to $9.50, maintaining a Buy rating.
