The Motley Fool·2025-07-23 00:09Core Insights - Nio's stock experienced a significant increase of 11% following the announcement of its new ONVO L90 SUV model, despite a decline in the Nasdaq Composite index [1][3] - The new SUV will be available in the Chinese market starting August 1, with two pricing options: a complete model at $39,000 and a battery-as-a-service model at $27,000 [3] - Nio's revenue grew by 21.5% year-over-year in the first quarter, and the new SUV is expected to enhance vehicle deliveries and generate high-margin service-based revenue [3] Financial Performance - Nio's stock has risen approximately 15% year-to-date, although it remains down about 76% over the past three years [1][4] - The company's current valuation stands at 90% of this year's expected revenue, which is comparatively low when juxtaposed with Tesla's price-to-sales ratio of around 11 times expected sales [4] Market Position and Risks - Nio has not yet achieved profitability, and the stock is subject to geopolitical risks due to tensions between the U.S. and China [5] - Continued expansion in vehicle deliveries could lead to significant gains for investors, but the investment remains risky [5]