Big Money Moves—Why Institutional Investors Are Divided on NIO!

NIO Inc. (NYSE: NIO) saw its stock climb 4.4% on Tuesday, closing at $4.90, despite continued skepticism from Wall Street analysts. While some experts are warning of risks ahead, investors appear to be focusing on the company’s strong delivery numbers and ambitious expansion plans.

Wall Street Sends Mixed Signals on NIO

Analysts have been cautious about NIO’s future, with Goldman Sachs cutting its rating from “neutral” to “sell” and lowering its price target to $3.90. JPMorgan Chase and HSBC also downgraded the stock, pointing to profitability concerns and growing competition in China’s EV market. These bearish calls have made some investors nervous, but the stock’s recent surge suggests that others aren’t convinced by the pessimism.

Institutional Investors Make Big Moves

While analysts are split, major institutional investors have been adjusting their positions in NIO—some buying in heavily, while others cash out.

• UBS Group AG increased its stake by an astonishing 975%, adding more than 40 million shares worth $174.6 million.
• Morgan Stanley boosted its holdings by nearly 78%, signaling long-term confidence in NIO’s potential.
• Meanwhile, Millennium Management LLC cut its stake by 60%, selling 8.4 million shares.
• FMR LLC made an even bigger exit, slashing its holdings by 96%, dumping over 5 million shares.

This divided outlook from institutional investors highlights the uncertainty surrounding NIO’s stock—some see an opportunity, while others are taking a more cautious approach.

Why Is NIO’s Stock Climbing?

Despite concerns from analysts, NIO continues to post strong EV delivery numbers. The company delivered over 31,000 vehicles in December alone, a 39% increase from the previous year. Additionally, NIO is expanding its offerings with two new brands—Firefly and Onvo, targeting both the premium and mass-market EV segments.

With a growing lineup and a strong presence in China’s rapidly expanding EV market, investors are betting that NIO’s long-term potential outweighs short-term risks.

What’s Next for NIO?

All eyes are now on NIO’s upcoming earnings report on March 21. The stock’s recent surge suggests that many investors are optimistic, but the company will need to deliver strong financial results to keep the momentum going. If earnings disappoint, the stock could face renewed pressure.

For now, NIO remains one of the most closely watched EV stocks on Wall Street. Will it continue to defy expectations, or will analysts be proven right? Investors will soon find out.