Nio is likely to stage a comeback with the launch of its new cars, so investors should go for the stock, according to Goldman Sachs. The investment bank upgraded the EV name to buy from neutral. It also hiked its price target on shares to $7 from $6.60, implying 46% upside from Friday’s close. “Among our coverage, we expect Nio to not only deliver one of the fastest volume growth, but also a premium margin profile and strong profit/[free cash flow] turn-around in 2026E,” analyst Tina Hou said in a note to clients. “This is supported by the company’s successful turnaround with the launch of new ES8/ES9 [model SUVs] … together with leading brand power.” Shares of Nio have dropped 6% year to date amid a broader slowdown in the EV industry in China . NIO YTD mountain NIO in 2026 However, the company’s recently launched luxury ES8 and ES9 model EVs have dominated the luxury new energy vehicle market in China, making up 39% of market share, which could boost its stock, according to the analyst. It’s an advantage that will likely persist, supporting future share growth, given the company’s focus on price and size, she said. “We observe that Nio has shown consistent capability to launch more competitive models over the past four quarters,” Hou wrote. “Looking ahead, we believe the company can apply [a] similar strategy to its 5 series and 6 series models…and rejuvenate the sales volume of these models in 2027E and beyond, further solidifying its positioning in the premium market and driving continued market share gain.” Goldman Sachs expects Nio to see 43% volume growth by the end of 2026 versus a 1% increase in domestic retail volume across its industry, largely “driven by competitive new model launches with timely delivery ramp-up.” The bank’s call falls in line with consensus on the Street. Of the 28 analysts covering Nio, 20 have a buy or strong buy rating on the stock, LSEG data shows. Shares have fallen 6% in 2026.
