NIO Shares Rise Sharply as New SUV Model Raises Hopes for Strong Sales

By Jiahui Huang

NIO's shares rose sharply after the Chinese carmaker's announcement of a new sport-utility vehicle added to expectations for strong sales momentum this year.

Shares were recently 7.9% higher at 52.10 Hong Kong dollars, equivalent to US$6.65, on Wednesday afternoon in Hong Kong.

NIO unveiled the five-seat Onvo SUV L80 on Tuesday night at a starting price of 245,800 yuan, equivalent to around US$35,950. The price tag is lower than that on the L90 SUV model it launched in August with a starting price of 265,800 yuan.

"The pricing was quite attractive," said CCB International analyst Qu Ke. If the company can maintain overall sales volume at around 40,000 units a month, that can help boost profitability, he added.

NIO turned profitable for the first time in the fourth quarter last year after turning around subdued sales. With multiple model launches scheduled later this year, analysts expect that the EV maker has the potential to maintain sales momentum and improve profitability further.

For the first quarter, a period when most automakers were facing slowing demand in China, NIO's total deliveries almost doubled to 83,465 units, which made analysts confident about its earnings during the period.

Citi analysts wrote in a recent note that the company's first-quarter delivery volumes beat market expectations at the high end, which should improve the company's gross profitability above analysts' estimates. Citi analysts forecast a 17.9% gross profit margin for the first quarter.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

April 29, 2026 01:51 ET (05:51 GMT)