World News – CA – What Happened to NIO Stock – and What Investors Should Do About It

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Stock at Chinese electric vehicle manufacturer

NIO

was on fire last week, leaving some on Wall Street wondering what happened and investors wondering what will come next

NIO (ticker: NIO) shares are up almost 33% thanks to a combination of analyst upgrades, company news and industry data

Chinese peers

Xpeng

(XPEV) and

Li Auto

(LI) increased by around 9% and 12% respectively

You’re here

(TSLA), the $ 400 billion EV monster, rose 13% on

S&P 500

and

Dow Jones industrial average,

for comparison, pink 02% and 01%, respectively

Deutsche Bank analyst Edison Yu attributes many gains to two analyst upgrades JP Morgan and Citigroup both raised shares to the equivalent of Buy But Yu says there are other reasons to improve the feeling

For starters, he notes that CEO William Li recently said production capacity could reach 150,000 by the end of 2021 It means a lot of growth if the company can sell all the cars it can make NIO delivered around 12,000 vehicles in the third quarter

Additionally, Chinese EV sales were strong in September, totaling around 100,000 vehicles. It’s good for NIO and other Chinese EV makers, as well as Tesla

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Looking ahead, he thinks stocks could be weak if Tesla cuts the price of its Model Y crossover. Still, he remains positive on the stock and predicts « strong demand for the foreseeable future … driven by the new coupe The company’s EC6 SUV, the 100 [kilowatt-hour] battery option and the deployment of BaaS « 

BaaS is the abbreviation for Battery as a Service NIO sells cars, essentially, battery-less and leases the battery to drivers This lowers the initial purchase cost And leasing paste is like buying gasoline

Yu is pricing Buy shares and has a target price of $ 26 This is below where the stock is trading, but he still kept his buy rating on the stock. Difficult, after all, to keep up with EV stocks Shares of NIO, for example, have risen by around 53% since September 4, the day before Yu began coverage with his buy rating At the time, the ‘stock was trading at $ 1797 Shares closed at $ 2848 on Friday

NIO shares took a break on Monday, down 2% to $ 2791 early in the afternoon So far this year has gained nearly 600%

The stock of Chinese electric vehicle maker NIO was on fire last week, leaving some on Wall Street wondering what happened and investors wondering what will come next

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NIO Stock