NIO stock gained on Monday after Goldman Sachs upgraded the Chinese electric vehicle maker to Buy from Neutral, setting a $7.00 price target that implies roughly 46% upside from the stock’s prior close of $4.78.
Analyst Tina Hou said the upgrade reflects NIO’s successful turnaround, driven by the launch of new premium models ES8 and ES9 that have reinforced the company’s brand strength in China’s competitive EV market. Hou expects NIO to deliver one of the fastest volume growth rates among peers, along with strong margins and a profit turnaround in 2026.
For 2026, Hou projects NIO will achieve year-over-year volume growth of 43% and revenue growth of 60%. The analyst also expects the company to report non-GAAP net profit of RMB 1.6 billion this year, a sharp turnaround from a loss of RMB 12.4 billion in 2025. Free cash flow is forecast to reach RMB 12.1 billion in 2026, up from negative RMB 3.1 billion the prior year.
NIO’s recent delivery performance supports the bullish thesis. In June 2026, the company delivered 40,597 vehicles, representing a 62.9% year-over-year increase. More notably, despite a 14% year-over-year decline in China’s broader new energy vehicle market during the first half of 2026, NIO expanded its own volume by 67% over the same period.
Hou contends that NIO’s stock decline of 6% year-to-date is disconnected from the company’s improving fundamentals. Compared with other pure-play new energy vehicle makers under Goldman’s coverage, NIO trades at a 25% discount to 2026 estimated price-to-sales, a 29% discount to 2027 estimated price-to-sales, and a 17% discount to 2027 estimated price-to-earnings multiples.
The analyst believes NIO can replicate the success of its new ES8 and ES9 models across its 5-series and 6-series lineup, which should help revive sales of those vehicles in 2027 and fuel continued market share gains in the premium segment. This competitive positioning, combined with the company’s path to profitability, underpins Goldman’s constructive stance on the stock’s valuation and growth prospects.
Sources
- TipRanks — Goldman Sachs upgrade details, Tina Hou’s 2026 growth and profitability forecasts
- Investing.com — Goldman Sachs price target and rating change from Neutral to Buy
- Yahoo Finance — NIO June 2026 delivery data and year-over-year comparisons
- CnEVPost — NIO May 2026 delivery figures and market context
