By Michael Elkins
Morgan Stanley reiterated an Overweight rating and $16.10 price target on Nio (NYSE:NIO) after the electric car maker’s December sales rose 12% MoM and 51% YoY, reaching a record level of 15,815 units. The company’s NT2.0 models contributed around 83% of total deliveries, picking up the slack from the NT1.0, which dropped 14% MoM again to 2,688.
Deliveries of the ET5 picked up in December and reached ~7.6K units despite prolonged supply constraints amid COVID disruptions. Cumulative vehicle deliveries in the 4Q reached 40K units, tracking slightly ahead of the company's reduced guidance of 38.5K-39.5K.
Nio is also scheduled to launch its ES8 and EC7 in the first half of 2023. Morgan Stanley believes that the new models, along with the incumbent ES7 and ET7, will “enrich the variety of NIO's model offerings in the RMB450K-600K price range”.
Shares of NIO are up 3.28% in premarket trading on Tuesday.