Morgan Stanley on NIO (NIO): 'March sales in-line with reduced guidance'
April 1, 2024 9:29 AM
Morgan Stanley analyst Tim Hsiao reiterated an Overweight rating and $10.00 price target on NIO (NYSE: NIO).
The analyst comments "NIO's March sales increased 46% YoY and 14% MoM, to 11,866 units, suggesting a notable sales uptick into month-end, based on weekly sales stat. SUV sales (ES6+ES7+ES8+EC6) rose 41% MoM, to 6.7k units, and sedan models were up 52% MoM, to 5.1k units. Cumulative vehicle deliveries reached 30k units in 1Q, in-line with the company's reduced guidance of ~30k. We saw weekly orders picking up more meaningfully after upgrading BaaS program. Renewed promotions to boost sales ahead: NIO rolled out Rmb1bn ICEV replacement subsidies on April 1, where consumers could enjoy up to Rmb10k credit upon ICEV trade-ins, as well as discounts on NIO Phone, free trial on NOP+, and coupons for battery swap. Nio also plans to start deliveries of the 2024 ES7, ET7 and ET5 in 2Q. This, coupled with launch of Onvo (Alps) in 2H24, should lend extra impetus to its sales trend."