Nio Earnings: Revenue Largely In Line; Strong Vehicle Margin Despite Price Competition
Despite intensifying competition even in the premium segment, we believe Nio is undervalued for long-term investors. While vehicle margin will likely remain under pressure in the near term, given price competition, we expect the margin to continue the sequential recovery trend in the second half as economies of scale kick in with additional contribution from Onvo cars. Management indicates that the margin will further expand in the second half due to lower battery costs, and the company targets to record a midteens-level vehicle margin in the fourth quarter.
United States