The electric vehicle industry is a booming company, on which Nio is focusing on. The EV startup is witnessing a recovery in deliveries as new models succeed, but competition is fierce. As it tries to bottom out, is Nio stock a good investment?
Established in 2014, Nio, sometimes referred to as the Tesla (TSLA) of China, continued to deliver explosive deals.
Nio also creates high-end electric vehicles. Unlike Tesla, Nio partners with a state-owned automaker rather than producing its own electric vehicles.
Current Stock Price of Nio
Nio stock is still negotiating with a lined base at a 24.44 purchase price.
On September 19, NIO increased 3.7% to 20.89, reversing course from the 50-day moving average. After falling due to various factors, including as supply disruptions, the once-hot EV stock still remained more than half below its 52-week high.
Currently its stock price is about 11.21 USD.
Price Forecast of Nio Stock
Price prediction 2023 (Short-term): By 2023, $154 would be available if the 134% development rate were used. For 2023, only few examiners have provided metrics. However, the majority of experts believe 2023 will be a crucial year for Nio because it is expected that the company will start to generate profits by that time.
Price prediction 2025 (Long-term): By 2025, Nio’s estimated offer cost is expected to range from $170 to $200. According to some analysts, the company will have increased its revenues by 400% between the years 2021 and 2025, from $5 billion to more than $22 billion, putting Nio in a strong position.
Experts Thinking About Nio
Below we’ve some quotes gathered from some leading Nio price estimators, which will surely help you gain an insight into what experts say.
Yuqian Ding, HSBC $54 target
“We estimate NIO’s 2022 volume growth at 79%, stronger than our growth forecast for China’s EV market (37%)”
Edison Yu, Deutsche Bank $70 target
“We believe NIO is trading at an attractive discount relative to global peers such as Tesla and Lucid”
“Given their strong product offerings, we expect local brands to retain 65%+ market share in China NEV (new energy vehicles) sales in 2022-25E despite increased competition from the continued expansion of Tesla and other foreign brands, which began to grow their electric vehicle divisions in recent years.”
How Nio Price Changes Over Time
Nio’s stock cost has surged in value since it entered the market in 2018, despite the fact that it had a calm two or three years prior to the climb higher. In the middle of 2020, its shares were only trading for $5.
Its price rose by more than 1000% to approximately $70 during the course of the next 8 months. Since then, the stock has gone through an auction, losing over half of its value even though it is currently trading much higher than the price of its IPO.
Also See: Tesla Stock Price Forecast 2025: Is it a Long-Term Stock?
Factors Affecting the Price of Nio
Here we have some of the main factors playing an important role in affecting the price of Nio stock.
- Electric Vehicle Sales: EV planning, development, and production are crucial to Nio’s success. The EV market has experienced substantial progress recently. If that development continues and the desire increases anymore, it may have a big impact on Nio’s share price.
- Competition: As new businesses enter the market and established ones expand there, the EV industry has grown increasingly competitive. Tesla, a well-known manufacturer of electric vehicles, maybe Nio’s strongest rival. It will probably have to defeat its rivals in order to prevail.
- Chinese Market: China is currently Nio’s largest market, as the company is situated in Shanghai. Even though it only sends out a limited number of vehicles, deals from Chinese clients have helped drive the organization forward. Deals for Nio vehicles will likely increase assuming China continues to move toward the EV industry.
Is Nio Stock A Buy Now?
A key viewpoint holds that Chinese EV company Nio continues to lose money while benefiting from fortuitous income growth. With power in China, a significant global market for electric vehicles, it is seen as a tenable Tesla rival in the years to come.
Nio Stock considers recovering after a beating to be a challenging experience. The potential and high-development EV stock continues to negotiate a new 24.44 purchase point, although it now remains much below the sector.
First and foremost, avoid buying Nio stock at the present. However, it’s possible that it will happen soon, so stay updated.