NIO Stock Forecast: $NIO resumes move higher as EV outlook brightens

NIO Stock Forecast: $NIO resumes move higher as EV outlook brightens

July 28th, NIO Stock Forecast: The overall outlook is Negative

The Target for the Next 12 months is $36.

2 analysts

Latest NIO Stock Price.

MetricValueTrend
Share Volume70KLower
Forward PE (1 Year)-33.13NA

NIO Stock Forecast: Performance Chart

NIO for the last 5 days is clearly outperforming its competitors.

Stock and Period5 days1 MonthYTD
Lucid+6.79%+17.53%-52.33%
TSLA+1.39%+7.31%+40.73%
NIO-1.47%+13.02%-36.99%
RIVN+2.53%+12.67%-70.05%
Stock data Source is Tradingview, data is a little different from NASDAQ official

Nio Stock Forecast: CrowdWisdom360 Insights

Why did Nio stock tumble today?

  • NIO extends its slump, losing over 2.57% to settle at $22.36
  • This price decline comes amid the renewed weakness triggered by the broader meltdown in Wall Street indices and increased worries over a potential recession, as markets hint to sell
  • In addition, Mizuho analyst Vijay Rakesh also slashed Nio’s price target from $55 to $48 per share

NIO Launches its Fastest SUV in China 

  • Recently, NIO launched its most anticipated ES7 SUV, alongside other product upgrades and existing model updates.
  • This new SUV is available for pre-order in China on the company’s app and will utilize NIO’s latest electric vehicle (EV) technology. 
  • The Deliveries are expected to begin on 28 August 2022.
  • The company has also released the starting prices for the ES7 in China. The Standard 75 kWh battery will start with RMB 468,000 ($69,700). The Ultralong 100 kWh battery will cost RMB 526,000 ($78,350), whereas the ES7 Premier Edition will be available at 548,000 ($81,600). 
  • Moreover, customers wishing battery-as-a-service (BaaS) will have to pay a pre-subsidy price, starting at RMB 398,000 ($51,800).

5 Huge Investors Betting on NIO Shares

  • Nio shares are in the green today as Investors are Betting Big on it
  • Morgan Stanley’s Tim Hsiao remained bullish and unveiled a price target of $34 for NIO stock.
  • Vanguard extends its bullish stance and holds over 49.06 million shares.
  • BLACKROCK INC. holds over 64 Million shares 
  • Baillie Gifford owns over 88 million shares.

NIO Stock Forecast: Momentum Summary

IndicatorTrend
OverallNegative
Market’s WisdomNegative
VolumeLower
Performance vs Nasdaq (Last 5 days)Lower
TechnicalsNeutral
Crowd’s WisdomNegative
Google Search [Weekly Trend]Lower
Social Media Sentiment TrendNeutral

Search Volumes for NIO Stock have been trending lower this week.

NIO Stock Forecast: Technical Analysis

SourceSupportResistanceRecommendation
Investing$18.56(S3)$19.22(R1)Neutral
Barchart$18.17(S3)$20.42(R1)Sell

NIO Stock Forecast: Mutual Funds with NIO Holdings

Mutual Fund Name12-month return
ProFunds Consumer Goods Ultra Sector Fund Investor Class14.8%
Vanguard Emerging Markets Stock Index Fund-16%
Government Pension Fund

Read: Best EV stocks to buy in 2022

NIO Stock Forecast: Latest Tweet

NIO Stock Forecast: NIO Social Media Sentiments

PeriodLast 7 DaysLast 24 HoursTrend
Net Sentiment ($NIO)+30.4%+31%Neutral

NIO Stock Forecast: 12 Months Target (March)

SourceAnalyst RatingTarget
AverageBuy$58
CitiBuy$87
OrtexBuy$33
Goldman SachsBuy$56

NIO Stock Forecast: 2022 Bull Case

  • Launch of ES7 SUV in April- Recently, Nio president and co-founder Lihong Qin said at a media event that Nio plans to begin shipping of five-passenger electric SUV ES7 by end of 2022. While it is also expected that the company can unveil a particular SUV in April at CSSC Pavilion in Shanghai. It is also believed that if the model does not debut in that event, Beijing International Automotive Exhibition, taking place one week later can be the next destination.
  • Launch of ET7 and ET5- ET7 was revealed early last year and ET5 was welcomed in December. Now, 2022 is the time to scale up production for these two new models. If the production kicks in, the results will be visible from Q1 2022 and it will be big boost to revenue for Nio.
  • Designing its Own Smart Phone- Nio is linked to developing its own smartphone. Although it is an early stage, but it is not something developed by another company with Nio’s logo on it and it is believed that Nio is doing everything in-house. It is also expected that the phone will have major integration with Nio’s vehicle and that can be a major selling point for both vehicle and phone.

Least “Expensive” among Peers- At present Nio is trading at a forwarding price to sales ratio of 3.7, which is not very cheap, but when compared to its peers, it is much less “expensive” and is available at reasonable valuations. Take, for instance, Lucid Group trade at a forwarding P/S ratio of 24.91, whereas Nio Inc trades at 15.93. Compared to that, Nio is available at five-six times cheaper than its peers. Even Tesla Inc trades at a P/S ratio of 8.9. In this inflation-intensive market, high P/S or P/E is one of the primary reasons for the downfall, and investors have turned to believe in actual numbers rather than lofty valuations.

Production is doubling every subsequent year: – Although, Nio is behind Tesla Inc, in terms of delivery numbers and revenue, but is well ahead of other competitors like Rivian Inc and Lucid Group. In 2019, Nio produced 20,565 vehicles and doubled it in 2020 to43,728 units. The trend continued in 2021 with 91,429 units. In 2022, till the first half, the company has delivered 50,827 units. Although the growth rate seems to slow down, but Nio has actual numbers to prove to investors, instead of lofty promises like Rivian and Lucid, which are yet to be fulfilled.

Nio Stock Forecast: 2022 Bear Case

  • Car Sales Fall in China- China Passenger Car Association recently reported that sales in China for Electric vehicles is falling. January is the eighth straight month for a decline in car sales. In January, retail car sales declined 4.4% from a year ago and sales are expected to remain sluggish in the coming months. The reason being the Covid pandemic and a slowing economy has a huge toll on demand.
  • BYD’s Expansion plan in Australia – BYD is one of the leaders in the Chinese energy vehicle production market. On Saturday, BYD is planning to launch Atto 3 crossover in Australia. It will be its first expansion plan in Australia. BYD is expanding its market share around the globe and its expansion is likely to give jitters to Nio’s shares.
  • Nio’s Rival XPeng Added to Hang Seng Tech Index –  XPeng is all set to be added to the Hang Seng Tech index as a constituent stock on March 7th, 2022. Reportedly, this index lists the top 30 technology companies listed in Hong Kong and XPeng will debut on the index as the newest addition. Nio is still trying to list in Hong Kong since last year and the addition of XPeng to the index will bad news for Nio’s investors.

Allegations of inflated revenue reporting: – Recently, on June 28th, Grizzly Research alleged that Nio is using affiliate Wuhan Weineng to inflate its numbers of revenue and narrow down the losses. Nio battery as a service (BaaS) program allows customers to purchase Nio vehicles without battery packs and then rent or swap batteries to lower the price. Nio sells battery packs to Weineng and generates revenue. Now Grizzly Research claims that Nio has oversupplied batteries to inflate revenue. Nio has as expected rebutted the founding, but has not given a detailed answer. Any allegation on the work ethics do hurt the company’s image and its share price.

Conclusion

Among its peers, only Nio Inc is based in China. American investors are wary of Chinese investments right now and Chinese regulations has done more damage to the tech companies like Alibaba and Tencent. It is natural for the investors to be worrisome considering these factors. But remember, after Tesla, only Nio has significant numbers to show in the terms of delivery. Also China is a great source of Lithium and Chinese government is supportive of EV market. All these factors should make investors to have a second look at Nio Inc as a stock.

Read DWAC Price Prediction

Writer: Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

NIO Stock Prediction and Forecast: NIO Stock Down by 3%. Trades below $40

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