J.P. Morgan downgraded NIO to Neutral from Overweight and reduced its price target to $4.50 from $7.00, citing sluggish Chinese passenger-vehicle demand, intensifying price competition and limited overseas exposure. NIO’s second-quarter revenue rose 69% year over year to $4.7 billion, slightly exceeding analysts’ expectations, while adjusted profit reached breakeven and vehicle gross margin expanded to 18.5%. The company forecast third-quarter revenue of about $5 billion, below the $5.3 billion consensus estimate, and expects to deliver approximately 109,500 vehicles. Its American Depositary Receipt fell 6.4% after hours before declining about 1.4% to $4.17 during Tuesday’s U.S. session. J.P. Morgan expects further cost pressure from batteries and memory chips, cutting its 2026 and 2027 revenue estimates by 5% and 9% and reducing its 2027 adjusted earnings forecast by 52% to a 975 million yuan loss. The brokerage forecasts 430,000 deliveries in 2026 and 480,000 in 2027, and continues to prefer BYD and Geely among Chinese automakers.