Citi Reiterates Buy Rating on Nio Inc. (NIO) Stock, Remains Positive on Q2 Outlook

On June 4, Citi reiterated its Buy rating on Nio Inc. (NYSE:NIO), maintaining a price target of $8.1.

Citi analyst Jeff Chung remains positive about Nio Inc.’s future prospects despite increasing losses in Q1 2025. Nio missed the revenue estimates by $56.14 million, posting $1.67 billion or RMB 12 billion. The revenue climbed 22% from a year ago, driven by total deliveries of 42,094 vehicles during the quarter. The vehicle deliveries reported a 40% increase year-over-year.

An assembly line of electric cars moving along a production line.

Chung believes that Nio’s guidance indicates a recovery in gross margins to double digits by Q2. The company expects its deliveries to be between 72,000 and 75,000 during Q2, representing growth of 25.5% to 30.7%. The company’s target to reach break-even by Q4 shows confidence in the growing market share. The analyst pointed out that Nio’s improved potential outcomes for the rest of 2025 will be supported by the launch of updated models and an increase in deliveries. Nio is focusing on major developments such as the Nio World Model for second-generation vehicles and improvements in safety and parking features. Chung also noted that the expansion of battery swap networks and ongoing cost optimization will contribute to better financial results.

Nio Inc. (NYSE:NIO) designs, develops, manufactures, and sells smart EVs in China and globally. The company is known for its premium vehicles under the NIO brand, family-oriented smart EVs under the ONVO brand, and small high-end smart EVs through the FIREFLY brand.

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.