Morgan Stanley Comments on NIO (NIO) CFO Resignation

Morgan Stanley analyst Tim Hsiao reiterated an Overweight rating and $10.00 price target on NIO (NYSE: NIO).

The analyst comments "According to NIO's announcement, its Chief Financial Officer Mr. Steven Wei Feng has resigned for personal/family reasons, effective July 5, 2024. NIO's Senior Vice President, Mr. Stanley Yu Qu, will be promoted to become the new CFO. C-level change is rarely positive news, but NIO's sound operation as of late should help to ease market concern and thus prevent any panic knee-jerk reaction. We don't expect this change to disrupt NIO's current operation or future fund-raising plans, if any. Our recent channel checks suggest NIO's orders have been steady at a ~5k weekly run rate. With improving mix/scale and reduction in promotions for certain models, we expect 2Q GPM to meet the company's guidance of double digits, or our expectation of low teens. Onvo L60 remains a more crucial stock catalyst, for which we expect more feedback on product, orders, and price in August leading up to the official delivery on September 10. The company has been accepting pre-sale orders at Rmb219.9k."

For an analyst ratings summary and ratings history on NIO click here. For more ratings news on NIO click here.

Shares of NIO closed at $4.87 yesterday.

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