"The tariff-driven market volatility has been rough on shares of Chinese electric vehicle (EV) maker Nio Inc. ( NYSE: NIO), which in April fell to a multiyear low of $3.02. Shares rebounded afterward but tumbled again recently. They are now up 11.5% year to date, after a 20.1% retreat in the past month due largely to a mixed third-quarter report that bolstered concern over whether it can reach its goal of quarterly profitability by the end of this year."
"There are some encouraging tailwinds for shareholders, though. The Chinese carmaker's high-performance models, which feature a +600-mile range, have caught the eye of vehicle enthusiasts and investors, while addressing range anxiety issues by creating battery swap technology as a supplement to charging. Nio is a leading electric vehicle manufacturer in China and has been expanding its presence internationally. From a stock performance standpoint, Nio has been a tale of two stories."
Tariff-driven market volatility pushed Nio shares to a multiyear low of $3.02 in April, followed by a rebound and a recent tumble. The stock is up 11.5% year to date but fell 20.1% over the past month largely because a mixed third-quarter report raised doubts about achieving quarterly profitability by year-end. The shares trade 41.3% higher than six months ago and have outperformed the S&P 500. About half of 27 analysts recommend buying the stock, with a mean price target of $6.69 and a high target of $9.12. Nio's high-performance models offer over 600-mile range and battery-swap technology, and the company leads EV manufacturing in China while expanding internationally. The stock surged over 810% from mid-2020 to early 2021 to an all-time high of $62.84 but has declined since; the long-term outlook is viewed as strong despite near-term concerns.
Read at 24/7 Wall St.
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