Goldman Sachs Upgrades NIO to Buy; Shares Rally on Turnaround Hopes

NIO shares rose 3.7% Monday after Goldman Sachs upgraded the Chinese EV maker to Buy from Hold and set a $7 price target. The bank cited expectations for significant volume growth and a premium margin profile, helped by the successful launch of the new ES8 and ES9 models.

The upgrade follows a solid delivery quarter: NIO reported 40,597 deliveries in June, bringing its second-quarter total to 107,658 vehicles. That was slightly below the company's prior guidance of 110,000 to 115,000, but the trajectory has analysts projecting 2026-2027 earnings notably above consensus on revenue growth and reduced operating expenses.

Product momentum is also building. The updated 2026 L60, launched June 11, now carries NIO's in-house Shenji NX9031 smart-driving chip, part of a broader push toward vertical integration that supports the margin story behind Goldman's call.