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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.

While we acknowledge the risk and potential of NIO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NIO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Growth Stocks to Buy According to Analysts and 13 Most Undervalued Cybersecurity Stocks to Buy Now.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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