How the ONVO L90 Launch and July Deliveries Will Impact NIO (NIO) Investors

• NIO Inc. reported that in July 2025, it delivered 21,017 vehicles across its NIO, ONVO, and Firefly brands, bringing total cumulative deliveries to 806,731 as of July 31, 2025.
• This marks a pivotal moment as the ONVO L90 SUV sold out its initial 10,000-unit batch within hours, and ONVO and Firefly brands now contribute a significant share of monthly deliveries, highlighting robust demand for NIO’s expanding product line.
• We'll assess how the ONVO L90 SUV's rapid sell-out bolsters NIO's investment narrative and multi-brand growth outlook.

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NIO Investment Narrative Recap

To own NIO shares right now, you need confidence in the company’s multi-brand expansion and ability to turn strong delivery momentum, exemplified by the ONVO L90 SUV's rapid sell-out, into sustainable revenue growth and margin improvement. While July’s robust deliveries and popular product launches reinforce the short-term catalyst of broadening market appeal, the most important risk remains elevated operating expenses as NIO scales its brands, a pressure point that appears unchanged even after this positive delivery update.

Among recent announcements, the ONVO L90 SUV’s successful launch stands out, as the entire first batch sold out within hours and the ONVO and Firefly sub-brands contributed a sizable share of July’s deliveries. This directly supports NIO’s growth strategy by showing real demand across new, lower-priced segments, a potential catalyst for boosting total sales if this momentum can be maintained.

But despite the recent sales milestone, investors should not ignore the risk that ongoing high SG&A expenses could weigh on earnings if cost controls do not keep pace with rapid expansion…

Read the full narrative on NIO (it's free!)

NIO's narrative projects CN¥136.5 billion revenue and CN¥7.4 billion earnings by 2028. This requires 26.2% yearly revenue growth and a CN¥31.7 billion increase in earnings from CN¥-24.3 billion.

Uncover how NIO's forecasts yield a $4.76 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Twelve fair value estimates from the Simply Wall St Community span from US$4.76 to US$18.27 per share, reflecting a broad spectrum of investor expectations. As NIO bets on portfolio expansion to drive top-line growth, these diverse outlooks underscore the importance of weighing upside opportunities against persistent cost challenges when forming your own view.

Explore 12 other fair value estimates on NIO - why the stock might be worth just $4.76!

Build Your Own NIO Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your NIO research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free NIO research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NIO's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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