"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. They are now up 67.2% year to date, after a 3.8% rise in the past week on news of record vehicle deliveries and strong revenue growth forecasts. A lawsuit filed by the Singaporean sovereign wealth fund remains a headwind."
"Wall Street sentiment remains somewhat cautious, though, with about half of 27 analysts who cover the stock recommending buying shares. While their mean price target rose to $6.91, that is less than the current share price, but note that the high price target is up at $9.02. 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."
"From a stock performance standpoint, Nio has been a tale of two stories. When shares debuted on the New York Stock Exchange on Sept. 12, 2018, at $9.90, they struggled to build momentum. Not until the summer of 2020 did the stock begin to surge, gaining over 810% from June 26, 2020, to Feb. 9, 2021, when the stock hit its all-time high of $62.84. Shares have fallen considerably since then, but the long-term outlook remains strong."
Nio's stock plunged to a multiyear low of $3.02 in April before rebounding to a 67.2% year-to-date gain, including a 3.8% weekly rise after record vehicle deliveries and strong revenue growth forecasts. A lawsuit from the Singaporean sovereign wealth fund remains a material headwind. The stock trades 83.2% above its six-month level, outperforming the S&P 500. About half of 27 analysts recommend buying, with a mean price target of $6.91 and a high target of $9.02. Nio offers high-performance models with over 600-mile range and battery-swap technology, leads China’s EV market and is expanding internationally.
Read at 24/7 Wall St.
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