Morningstar: NIO Group Q1 profit margin and cost control still disappointing, downgrading company fair value estimate.

Morningstar senior stock analyst Vincent Sun said in a report that NIO Group's first-quarter profit margin and cost control performance were disappointing. Revenue grew by 21% year-on-year, but due to increased competition, inventory clearance, and changes in the car model mix, it fell short of the lower end of performance guidance. The company attributed the lower profit margin to weak sales, with its 10% automobile margin below Morningstar's expectations. If management can meet performance guidance, NIO Group will have significant upside potential, but the brokerage remains cautious about the company's sales growth and ability to reduce losses. Morningstar has lowered its fair value estimate for NIO from $5.60 to $5.