NIO Stock Jumps Overnight: Goldman Sachs Sees Over 40% Upside On ‘Successful Turnaround’ In Premium SUVs

• Goldman Sachs upgraded Nio to ‘Buy’ and set a $7 U.S. price target, implying about 42% upside.
• Nio is expected to swing to an adjusted profit of 1.6 billion yuan and a sharply positive free cash flow.
• Firefly cut prices in Norway and Portugal as European demand remains weaker than in China.

U.S.-listed shares of Nio, Inc. (NIO) jumped as much as 3% overnight late Monday as Goldman Sachs turned bullish on the EV maker’s premium SUV revival and forecast more than 40% upside to the stock. 

Nio’s U.S.-listed stock rose 3% on Monday, ending the regular session at $4.93. 

Goldman Bets On Nio’s Market Share Gains 

Goldman Sachs upgraded Nio to ‘Buy’ from ‘Neutral,’ with a $7 price target for the U.S.-listed shares and HK$55 for the Hong Kong stock. The targets imply a 42% and 41% upside, respectively. Goldman said Nio’s “successful turnaround” has been driven by the ES8 and ES9, which boosted its position in China’s premium new-energy vehicle (NEV) market and reinforced its “leading brand power.”

The bank expects Nio to deliver “one of the fastest volume growth rates” across Goldman’s coverage, alongside a “premium margin profile” and a strong profit and free cash flow turnaround this year. It also forecasts vehicle volume growth of 43% and revenue growth of 60% this year, compared with only about 1% growth in China’s broader domestic auto market.

Goldman also expects Nio to swing to a non-GAAP net profit of 1.6 billion yuan ($236 million) from a 12.4 billion yuan loss in 2025. Free cash flow is projected to improve to 12.1 billion yuan from an outflow of 3.1 billion yuan. The firm said Nio had demonstrated a “consistent capability to launch more competitive models” and could eventually apply the same strategy to its 5-series and 6-series vehicles, supporting renewed demand and continued market-share gains.

The bank had placed Nio on its ‘Sell’ list in late 2024 before moving to ‘Neutral’ in June 2025 as the company’s cost structure and earnings outlook improved.

Nio’s New SUVs Drive Growth Push 

Nio’s current product cycle centers on the ES9 flagship SUV, the Onvo L80 and a new five-seat ES8. The five-seat ES8 starts at 382,800 yuan, below the three-row version, and targets a premium segment the company believes is significantly larger. The launch is also intended to stabilize ES8 demand after monthly deliveries fell to 8,966 in June from 16,255 in March. The model remains central to Nio’s profitability plan, with vehicle margin estimated at more than 20%.

Nio Slashes Firefly Prices Abroad 

Nio’s improving momentum in China contrasts with weaker demand for its Firefly sub-brand in Europe. Firefly recently reduced prices in Norway and Portugal, including a roughly 12% cut in Portugal, as the company tries to convert limited registrations into stronger second-half demand, EV noted.

European tariffs, shipping costs and taxes have pushed Firefly’s regional pricing close to twice its Chinese starting price, limiting its competitiveness despite favorable reviews. The brand delivered 6,946 vehicles globally in June, up 76.7% from a year earlier, though most sales were in China.

How Do Retail Traders Feel About NIO?

On Stocktwits, retail sentiment for NIO improved to ‘neutral’ from ‘bearish’ a day ago, amid a 531% jump in 24-hour message volume.

One user said, “$NIO Still here, still HODLING, still below $5, still undervalued, still exhausted......”

Another user said, “$NIO Extremely high chance this is the last time it’ll be under $5 for a long time”

Nio’s U.S-listed stock has risen 26% over the past year. 

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