NIO shares fell 4.9% to $3.86 on Wednesday as trading volume reached about 71.9 million shares, approximately 91% above typical levels. The decline followed JPMorgan’s move to cut its rating from Buy to Neutral and lower its price objective from $7.00 to $4.50, while Freedom Broker downgraded the stock to Hold and reduced its target to $4.00. NIO’s second-quarter revenue rose 69.1% year over year to RMB32.14 billion ($4.74 billion), and deliveries increased 49.4% to 107,658 vehicles. The company also reported narrower adjusted losses, an 18.5% vehicle gross margin and positive free cash flow. However, its third-quarter revenue outlook of $4.9 billion to $5.0 billion was below the $5.1 billion analyst consensus, marking the third consecutive quarter in which the stock faced pressure after earnings. JPMorgan lowered its 2026-2027 revenue forecasts by 5% to 9% and earnings estimates by 13% to 52%, citing weaker delivery expectations for the latter part of 2026 and deteriorating demand in China’s passenger vehicle market approaching 2027. Rising memory-chip and battery-material costs could also pressure margins. NIO reported August deliveries of 35,836 vehicles and cumulative deliveries of 262,893 through August, while targeting monthly deliveries above 40,000 in the fourth quarter and quarterly deliveries exceeding 120,000 to restore positive cash flow. The company is expanding battery-swap infrastructure, developing Firefly technology and exploring possible robotaxi applications. It is also launching multi-brand Sky Stores and a flagship Nio House in Macau for NIO, Onvo and Firefly vehicles. Sanford C. Bernstein cut its target to $5.00 from $6.00 while keeping a market perform rating. The broader analyst consensus was Hold with an average target of $6.29, while TipRanks showed a Moderate Buy consensus based on four Buy, four Hold and one Sell rating over the past three months, with an average price target of $5.31.