Nio Inc. shares hit 52-week low amid demand concerns

Nio Inc. shares reached a new 52-week low following reports of sluggish demand and a challenging pricing environment in the Chinese electric vehicle market. Despite the company reporting three consecutive quarters of adjusted operating profit, revenue missed prior internal ranges, and the outlook for the third quarter indicated only modest sequential growth.

Wall Street analysts have responded by adjusting their outlooks. JPMorgan downgraded Nio from Overweight to Neutral, lowering its price target to $4.50, citing that slow demand outweighs the company's sustained profitability. While Citi maintained a Buy rating, it reduced its price target to $7.10 and lowered revenue and volume estimates for the 2026-2028 period.

Nio has guided third-quarter vehicle deliveries to be between 108,000 and 111,000 units, representing a year-on-year increase of 24% to 27.5%, though this is only a marginal improvement over second-quarter figures.