10:05 AM EDT, 10/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our target of USD6.50 implies a 2026 P/S of 1.0x (five-year mean: 4.3x), reflecting projected slower revenue growth (vs. five-year CAGR through 2024), execution risks, and a weak balance sheet. Singapore's sovereign wealth fund filed a lawsuit in August 2025 against NIO and its CEO/CFO (made public in October), claiming that NIO inflated its revenue by recognizing future battery subscription income upfront from sales made to affiliated entity Weineng. The lawsuit also argues that NIO should have consolidated Weineng's financials, as NIO's true economic interest in the entity exceeds 50%, or refrained from recognizing the revenue, due to the high likelihood of non-collection given Weineng's weak balance sheet. A June 2022 report from Grizzly Research detailed the same allegations against NIO, but an independent committee found the claims to be unsubstantiated. We think this lawsuit could dampen investor confidence in NIO's financials and governance. We keep our 2025 and 2026 loss per ADS estimates unchanged.