Morgan Stanley Predicts Record Q3 Sales for Nio (NIO) Amid Robust Demand

Nio Inc. (NYSE:NIO) is one of the best high growth consumer stocks to buy now. On August 16, Morgan Stanley said that it expects Nio Inc. (NYSE:NIO) to report record Q3 sales guidance given the strong order backlog for the Chinese EV maker’s new Onvo L90 SUV. The company is expected to report its Q2 financial results on September 4.

The investment bank expects Nio to give guidance of 78,000 to 80,000 for Q3, which would be a robust 8.3%-11.1% growth on a quarter-on-quarter basis. Nio reported 72,000 to 75,000 deliveries in Q2.

Analysts expect revenue of around 19.5 billion to 20.1 billion renminbi (approximately $2.71 billion to $2.90 billion) for Q2, representing a year-over-year growth of up to 20.3%. A stark difference in growth compared to its American counterpart Tesla, Inc. (NASDAQ:TSLA), which saw an 11.7% decline in revenue, year-over-year.

Unlike Tesla, Nio is deep in the red. In 2024, the company saw a net loss of $3.15 billion, with a net margin of -34.47%. However, Morgan Stanley expects the Q3 net loss to narrow to about 5.5 billion yuan ($766 million) from 6.9 billion yuan ($947 million) in Q1. The company spends heavily on R&D towards building its own autonomous vehicles. In Q1, the company reported R&D expenses of 3.18 billion renminbi or $438.4 million, which explains nearly half of its net loss for Q1.

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Disclosure: None.