Morgan Stanley: NIO's ONVO Launches Refreshed L60 — More Intelligence, Sharper Pricing, Bigger Ambition
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Morgan Stanley reports that NIO's ONVO brand launched the refreshed L60 on June 12, 2026, marking significant upgrades in intelligent driving, pricing, and sales targets. The firm maintains an Overweight rating on NIO with a target price of $8.50 (HK$65), expecting the model to drive second-half 2026 volume growth despite near-term profitability pressures.
The refreshed L60 starts at RMB 162,800, or RMB 129,800 under BaaS, roughly RMB 10,000 below the prior version. It is equipped with an NVIDIA Orin-X chip delivering 254 TOPS and a single LiDAR unit, upgrading its capabilities to urban NOA. ONVO's 2026 sales target has been raised to 200,000 units, with the refreshed L60 expected to contribute approximately 150,000 units.
Morgan Stanley notes that NIO's Q2 2026 delivery guidance of 55,000 to 60,000 units trails market expectations due to product transitions. However, Q3 deliveries are projected to grow 30 to 40 percent sequentially as the L60 ramps up. Q2 gross margin is forecast at 12.5%, recovering to 15% in Q3. The ONVO brand targets a 10% gross margin in H2 2026 and 15% in 2027, while the main NIO brand is expected to sustain 18 to 20%.
Management forecasts a full-year 2026 net loss of RMB 12 billion, narrowing from 2025. The pricing strategy could trigger industry price wars, yet NIO's battery-swap network and brand premium provide defensive moats. With shares trading at $5.80 (HK$44), the stock offers 46% upside to the target.
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