Institution: NIO Inc. stock price is expected to be supported by vehicle sales and profitability; developments in the lawsuit will not have a significant impact on the production of NIO ES8 and Ladao L90 vehicles

Morningstar's Vincent Sun stated in a report that Nio's stock price is expected to be supported in the short term by improvements in vehicle sales and profitability. The electric vehicle manufacturer's Hong Kong stock fell after investors, the Singapore Government Investment Corporation, filed a lawsuit against Nio in the United States, accusing it of exaggerating the value of its securities. Although the accusation has harmed Nio's corporate governance, the analyst expects that this development will not have a significant impact on the production of the Nio ES8 and the Lada L90 vehicles. Morningstar maintains its fair value estimates for Nio's American Depositary Receipts and Hong Kong stock at $5.30 and HKD 41.60, respectively