Barclays Cuts Nio Inc. (NIO) PT, Maintains Underweight Rating

On June 4, Barclays downgraded the price target on Nio Inc. (NYSE:NIO) from $4 to $3, while maintaining its Underweight rating on the stock.

Barclays analyst Jiong Shao lowered the price on NIO following the company’s widening losses reported during Q1 2025. The company posted an adjusted net loss of RMB 6.28 billion or $873.6 million, almost 28% higher compared to Q1 2024. The Chinese smart EV maker has yet to report a profitable quarter since its founding in 2014.

Barclays Downgrades PT on Nio Inc. (NIO), Maintains Underweight Rating

A fleet of eco-friendly electric cars, a symbol of the company’s commitment to sustainability.

Shao remains pessimistic regarding NIO’s future plans after the company suffered during Q1 due to lower selling prices with higher promotions for inventory clearance for its old models. The analyst also pointed out that the increased product mix of the ONVO brand did not massively impact the company’s overall performance. Achieving volume scale is fundamental to the NIO’s improving margins, but the intensifying competition in China remains a hurdle. Shao believes that the 50,000 monthly units target by year-end seems challenging. For now, the company’s guidance for Q2 is to achieve total deliveries between 72,000 and 75,000, which indicates 25.5% to 30.7% growth from a year ago.

Nio Inc. (NYSE:NIO) designs, develops, manufactures, and sells smart EVs in China and the rest of the world. The company offers five and six-seater electric SUVs, as well as smart electric sedans.

While we acknowledge the potential of NIO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NIO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure. None.