At present, NIO stock is one of the highest Wall Street targets with the average Buy rating. Year-to-date, NIO shares are 838.06% up. NIO market cap is $48.36 billion.
Chinese electric vehicle producer Nio Inc (NYSE: NIO) became one of the biggest calls on Wall Street on Wednesday. NIO stock rose by over 8% during the trading session as Citigroup analysts upgraded their price target for NIO from $33.20 to $46.40. NIO stock closed 6.23% up, at $37.71. In the pre-market today, it is further 4.46% up, $39.39 at the moment of writing.
According to Citigroup analyst Jeff Chung, there are several factors that conditioned the positive view on NIO stock’s performance. Firstly, Nio has significantly expanded its market share this year. It now serves areas in China, Germany, Hong Kong, the UK, and the U.S. Secondly, Chung highlighted strengthening gross processing margins, high margin visibility, and battery cost reductions. Further, Nio has reported a jump in sales. The company delivered 5,055 vehicles in October, an increase of 100% year-over-year. In 2020, deliveries jumped to 31,430 vehicles, which is a 111.4% spike compared to last year. Obviously, Nio has managed to recover from the pandemic and show quite good performance despite the economic crisis.
Nio Stock Performance
Year-to-date, NIO shares are 838.06% up. NIO market cap is $48.36 billion. At present, NIO stock is one of the highest Wall Street targets with the average Buy rating. JPMorgan analyst Nick Lai has also upgraded Nio to Buy from Hold and raised his price target to $40 from $14 as he views the company as a long term winner in the China premium EV space.
Nio designs, manufactures, and sells smart and connected electric vehicles. Its autonomous driving electric vehicles are integrated with next-generation technologies and artificial intelligence, therefore, Nio is a strong rival of the U.S. Tesla Inc (NASDAQ: TSLA) on the international market.
Right now, all eyes are on Nio’s upcoming Q3 2020 results. The report is scheduled for November 17. Notably, the expectations for the company are pretty high.
Chinese EV Industry Prospering
Nio is the largest but not the only Chinese electric vehicle maker that has been successful. For example, Chinese EV startup Xpeng Inc (NYSE: XPEV) delivered over 3,000 cars in October, which is an increase of 229% year-over-year. The company went public in the summer, but its stock already has a Buy rating and a $34.70 price target for shares. That’s about 28% higher than recent levels.
Another EV company Li Auto (NASDAQ: LI) is also an up-and-coming Buy. Its deliveries of One SUV in October rose 5% month over month to 3,692 cars. Li Auto stock climbed 25.31% year-to-date, vaulting above a 21.96 buy point from a deep cup-with-handle base. Its market cap is $20.11 billion.
Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.
