Bank of China International released a report stating that Nio Inc (NIO.US) officially launched the Ludo L60, which is the first car of its sub-brand Ludo targeting the mass market.

The bank believes that compared to direct competitor Model Y, the L60 is competitive in terms of product strength and pricing. At the same time, with Nio's unique Battery as a Service (BaaS) battery rental model, the bank believes that the Ludo L60 will target users in the range of 1.5 to 0.2 million, competing with similarly priced new energy vehicle models such as BYD Song Plus, as well as traditional fuel vehicles such as Toyota RAV4, Honda CRV, and Volkswagen Tiguan.

The report indicates that the company guided the fourth-quarter sales volume of Ludo L60 to be 0.02 million units, with December expected to surpass 0.01 million units in monthly deliveries. The bank believes that short-term sales of the L60 will be constrained by production capacity constraints and channel coverage. However, benefiting from further release of capacity at the F2 factory, the bank expects that by early 2025, L60 sales could be further increased from the base of 0.01 million units, and challenge the monthly delivery volume of 0.02 million units in the second half of 2025.

The bank is still bullish on Nio Inc, believing that its forward-looking layout in technology, production capacity, network, etc., will drive its continued reduction in losses starting from 2025. The bank reiterated a 'buy' rating with a target price of $9.