Goldman Sachs Turns Bullish on NIO Stock: 42% Upside Potential

Goldman Sachs has upgraded NIO's stock from 'Neutral' to 'Buy', citing strong delivery results that validate the EV maker's turnaround.

■The firm reported 40,597 vehicles delivered in June and 107,658 in Q2 2026, bringing total deliveries to 1.19 million.

■Goldman Sachs highlights NIO's premium SUV models (ES8 and ES9) as key drivers of its successful turnaround, reinforcing its brand power in China's premium EV market.

■The firm projects 43% vehicle growth and 60% revenue growth for 2026, far outpacing the ~1% growth expected in China's broader auto market.

■NIO is targeting a non-GAAP net profit of 1.6 billion yuan ($236 million) in 2026, up from a 12.4-billion-yuan ($1,82 billion) loss in 2025.

■Goldman Sachs notes NIO's gross margin nearly tripled to 19% YoY in Q1, with vehicle margins reaching 18.8%. R&D expenses fell over 40%, and SG&A declined more than 20%.

■The firm previously placed NIO on its 'Sell' list in late 2024 before moving it to 'Neutral' in June 2025 as cost improvements validated the turnaround thesis.

NIO's leadership in China's premium EV segment could strengthen its global positioning, especially as Chinese automakers accelerate investments in electric vehicles.