Citigroup's research report states that in response to the downgrading trend of consumer spending in the Chinese automobile industry, the sales forecast for NIO Inc (09866.HK) (NIO.US) from 2024 to 2026 has been adjusted upward from 0.23 million, 0.364 million, and 0.451 million vehicles to 0.252 million, 0.413 million, and 0.5 million vehicles. Looking forward to Tesla's (TSLA.US) upcoming driverless taxi Robotaxi launch next week, which may boost market sentiment. Coupled with the fourth quarter being the traditional peak season for automobile industry sales, Citigroup has currently raised NIO Inc's forecast P/E multiple for this year from 1.4 times to 1.6 times. The target price for Hong Kong and US stocks has been adjusted upwards from HK$53.7 and $7 to HK$68.1 and $8.9, respectively.

Citigroup believes that NIO Inc's subsidiary ONVOjoyway automobiles may benefit from the positive consumer sentiment during this year's National Day and Golden Week. If order volume improves, it will strengthen investors' confidence in its new brand Firefly, maintaining a 'buy' rating.