BofA Trims Nio (NIO) Price Target, Maintains Neutral Rating

On June 4, Bank of America reduced its price target on Chinese electric vehicle maker Nio Inc. (NYSE:NIO) to $4.30 from $4.90, maintaining a Neutral rating following weaker-than-expected first-quarter results. The firm cited near-term challenges and shifting forecasts as it recalibrated expectations for the company’s path forward.

A fleet of electric vehicles in a cityscape, representing the companies success in urban transportation.

While BofA slightly raised its 2025 vehicle sales volume estimate by 0.3%—partly due to anticipated traction from Nio’s upcoming models—it trimmed its 2026 forecast by 9%, reflecting caution around long-term demand and competitive pressures in the Chinese EV market. The adjustment considers both product launch timing and the broader macro backdrop.

In response to Q1 performance and recent efforts by Nio Inc. (NYSE:NIO) to streamline operations, BofA also revised its non-GAAP net loss estimates downward. The bank now expects the company’s 2025 and 2026 losses to be 14% and 44% lower, respectively, than previously projected, attributing the change to reduced operating expenses and tighter cost management.

Despite modest improvement in near-term profitability, the firm remains cautious on the stock, pointing to lingering structural headwinds and margin pressure. While Nio’s innovation pipeline shows promise, BofA believes execution risks and market saturation continue to weigh on upside potential. The new price target reflects a more tempered outlook as investors await further clarity on how Nio navigates an increasingly competitive and cost-sensitive EV landscape.

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