Citigroup Reaffirms Buy Rating on NIO (NYSE: NIO) Despite Lower Price Target

• Citigroup reiterated its “Buy” rating on NIO but lowered its price target to $7.10 from $8.20.
• NIO’s second-quarter deliveries and revenue fell below the company’s guidance, while its third-quarter outlook trailed Wall Street expectations.
• Vehicle margin improved to 18.5% from 10.3% a year earlier, although the shares declined approximately 4%following the report.

On September 1, 2026, Citigroup reiterated its “Buy” rating on NIO (NYSE: NIO), a Chinese smart electric vehicle manufacturer. The firm lowered its price target to $7.10 from $8.20, reflecting concerns about the company’s near-term performance and outlook.

NIO delivered 107,658 vehicles in the second quarter, up 49.4% year over year but below its guidance range of 110,000 to 115,000 vehicles. Total revenue increased 69.1% to RMB32.14 billion, or approximately $4.74 billion, but also fell short of the company’s forecast. NIO’s financial results showed a GAAP net loss attributable to ordinary shareholders of RMB721.6 million, while adjusted net profit attributable to shareholders was RMB24.8 million.

For the third quarter, NIO expects to deliver between 108,000 and 111,000 vehicles, representing strong year-over-year growth but only modest sequential improvement. Revenue is projected to range from $4.91 billion to $5.02 billion, below Wall Street’s estimate of approximately $5.3 billion, according to Barron’s.

Profitability nevertheless improved significantly. Vehicle margin rose to 18.5% from 10.3% a year earlier, while gross margin increased to 18.4% from 10.0%. Despite these gains, concerns about the revenue outlook, intense competition, and rising component costs pushed NIO shares down about 4% to approximately $4.06, after touching a new 52-week low near $3.99.