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Morgan Stanley Weighs in on NIO Stock Following Latest New Developments

There was plenty for investors to savor in Nio’s (NYSE:NIO) recently held 2023 NIO Day event. The company shone the spotlight on its technological abilities via the unveiling of its “executive flagship” ET9 sedan. The new vehicle represents the Chinese EV maker’s first foray into the ultra-luxury auto market, setting its sights on competing with the likes of the BMW 7 Series, Mercedes-Benz S-Class, and Mercedes-Benz Maybach S680 in China.

Establishing a new standard for next-generation smart EVs, the 4-seater D-class sedan showcases 17 pioneering technologies and 525 patent filings. Key features include a cutting-edge 900V architecture, the groundbreaking self-developed Shenji NX9031 autonomous driving chip, which is the world’s first 5nm automotive-grade chip for autonomous driving, boasting over 50 billion transistors and a 32-core CPU architecture. Additionally, the vehicle incorporates steer-by-wire technology and a comprehensive full-active suspension system. Pre-orders are already taking place with a presale price of RMB 800k, while deliveries are set to begin in 1Q25.

Morgan Stanley analyst Tim Hsiao came away from the event impressed. “NIO flexed its technology muscle in different aspects, reaping some of its R&D investments over the past few years,” the analyst said. “Following a successful event, investor focus will likely shift to “ALPS”, which is expected to be the most exciting product for NIO in 2024.”

Elsewhere, the company remains committed to advancing power swap technology and has introduced the fourth-generation NIO Power Swap Stations (PSS 4.0) along with the 640kW Liquid Cooled Power Charger. The PSS 4.0 is designed to accommodate up to 23 batteries and facilitate up to 480 swaps per day, featuring a 22% reduction in service time. “More important,” Hsiao goes on to add, “the PSS 4.0 will be compatible with multi-size battery packs and support multibrands shared PS service, laying a solid foundation for other OEM collaboration.”

All told, Hsiao remains the Street’s most prominent Nio bull, maintaining an Overweight (i.e., Buy) rating and Street-high $18.7 price target, suggesting the shares will climb 99% higher in the year ahead. (To watch Hsiao’s track record, click here)

The other 8 recent NIO reviews on file break down into 6 Buys and 2 Holds, all for a Strong Buy consensus rating. The average target currently stands at $11.36, representing 12-month upside of 21%. (See Nio stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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