Nio Inc is expected to sustain its non-GAAP profitability in the second quarter, primarily driven by the strong delivery performance of its high-margin SUV models.
A surge in orders for the new ES9 flagship SUV prompted analysts to raise full-year delivery estimates and the company's price target.
Deutsche Bank expects Nio's second-quarter non-GAAP net profit to reach around 180 million yuan ($26.5 million), benefiting from the strong performance of high-margin SUV models.
The market performance of the new flagship SUV ES9 has been particularly outstanding, with Nio executives announcing last week that the company will deliver its 10,000th ES9 in June.
This exceeded broad market expectations, and Deutsche Bank revised its full-year 2026 delivery estimate for the ES9 upwards to 56,000 units.
The upward revision in delivery estimates also pushed up overall financial forecasts, with Deutsche Bank raising its 2026 total volume assumption for Nio to 450,000 units.
Consequently, the analysts revised down Nio's 2026 reported loss forecast by 35.4% and raised the target price to HK$86.00 from the previous HK$84.50.
The surge in new orders is primarily linked to the launch of the new SUVs, with Deutsche Bank estimating that the ES9 has already secured over 25,000 non-cancellable orders.
As Nio accelerates deliveries, competition in China's large SUV market is heating up sharply, with local competitor Li Auto striving to defend and expand its shares in the premium market.
Strong demand for high-margin SUVs supports Nio's profitability
