Analyst downgrades across 1H25 and target cuts have further weighed on the multiple as investors seek clearer evidence of durable gross margin stability and operating leverage. Strategically, NIO is leaning on product refreshes and sub-brands (Onvo, Firefly) to broaden its addressable market while scaling infrastructure such as battery-swap networks, but the near-term cadence depends on successful launches and pricing discipline in a crowded field led by aggressive peers. Management has previously pointed to improving vehicle margins and potential late-year cash flow inflection, yet the latest delivery contraction underscores execution risk into the upcoming earnings cycle.