NIO Ends Four-Week Slide, DB Predicts Q2 Breakeven Despite ES8 Drag
NIO•NIO stock posted its first positive weekly return in four weeks as trading closed Friday. Deutsche Bank maintains a Q2 breakeven forecast despite modeling a drag on gross margin from lower ES8 deliveries.
1. Deutsche Bank Forecast
Deutsche Bank updated its model to reflect softer ES8 deliveries, forecasting a reduction in gross margin contribution from the flagship SUV. Despite this headwind, the bank reiterates its expectation that NIO will achieve operational breakeven on a cash flow basis in Q2.
2. Weekly Stock Performance
After four consecutive weeks of declines, NIO shares recorded their first positive weekly return, reversing investor sentiment as optimism built around cost controls and delivery growth prospects. The rally highlights market focus on bottom-line progress rather than pure volume expansion.
