Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News

Editor's Pick

Nio stock price analysis: could jump by ~80% unless this happens

Nio (NYSE: NIO) stock price has been dead money for a while now. The shares were trading at $8.40 on Tuesday, where it has been stuck at in the past few months. This price is about 87% below the highest point in 2022. So, is it safe to buy Nio?

Nio has some catalysts

Nio share price has been in a strong sell-off in the past few months. This decline happened as investors remained concerned about the electric vehicle industry. Indeed, most EV stocks like Rivian, Lucid, and Mullen Automotive have all crashed hard in the past few months. 

The main reason why Nio stock price is crashing is that the company is seeing slow growth in China, its primary market. Further, the level of competition in the industry has jumped sharply. In addition to well-known companies like Byd, SAIC, Xpeng, and Li Auto, there are now tens of EV companies in China.

Despite all this, there are some potential catalysts for Nio. First, analysts believe that Nio will become breakeven in the next few years. Precisely, analysts expect that the firm will make its next annual profit in 2026, earlier than other EVs. They also expect that the firm’s revenue will be $12 billion this year and $59 billion in 2032.

Second, despite the competition, Nio has a good market share in China, where it is seen as a viable alternative to Tesla. Most importantly, its SUV business is seeing traction in the country. The most recent result showed that the company delivered 6,658 vehicles in April, a 31% increase from the same month in 2022. It had delivered 10,378 cars in the previous month.

Third, Nio hopes to grow its market share abroad. In April, the company announced that it will build a new plant to build cars for the European market as it faces stiff competition in China. Global expansion could be a good thing for the company. However, I suspect that European buyers will still go for European EV brands.

Nio stock price forecast

NIO chart by TradingView

So, is it safe to buy Nio stock? Turning to the daily chart, we see that the Nio share price has been in a steep sell-off in the past few months. Recently, however, it seems like the shares have started bottoming after finding a strong support at $8. It has failed to move below this support several times this year.

Therefore, I suspect that the stock will bounce back in the coming months. If this happens, the stock will retest the key resistance point at $13.72, which is about 80% above the current level. A break below the year-to-date low of $7.45 will signal that there are still more buyers in the market.

The post Nio stock price analysis: could jump by ~80% unless this happens appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Everynet, one of the world’s largest network operators for national LoRaWAN® networks, announces it is working with Amazon Web Services (AWS) to offer long-range...


    As more candidates throw their hats into the 2024 Presidential ring, I’d like to offer a proposal that should have immediate bipartisan support: stop...

    Editor's Pick

    The Internet of Things (IoT) is changing the way we interact with technology, and it has the potential to revolutionize the way we manage...

    Editor's Pick

    Semtech Corporation and esteemed engineering design services firm, Connected Development, today announced the launch of the new XCVR Development Board and Reference Design integrating...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023