Nio Inc. (NIO) could be the next EV success story.
For one, the industry shows no signs of slowing.
Global demand for such vehicles is only expected to grow. In fact, according to the International Energy Agency, we could see about 130 million EVs on the road by 2030, a monumental move from 5.1 million in 2018.
Plus, according to Wedbush analyst Dan Ives, “We continue to believe [electric vehicle] demand in China is starting to accelerate in July/August with Tesla competing with a number of domestic and international competitors for market share with Giga 3 remaining the linchpin of success which remains the prize that Musk and Tesla are laser focused on capturing.”
Two, Nio is seeing a good deal of upgrades this week.
UBS analyst Paul Gong upgraded the stock to the equivalent of a Hold from a Sell. The analyst also raised his price target from $1 to $16, according to Barron’s.
Then, just today, Morgan Stanley upgraded the stock from Equal Weight to Overweight, noting the investment from the Hefei government “not only removes funding risk but also advances Nio’s vehicle profitability and cash flow,” as quoted by Seeking Alpha. The firm also raised its price target from $12 to $20.50 a share.
Three, Nio is still seeing solid sales growth.
For July 2020, the company quadrupled its EV sales. Sales were up 322% to 3,533 vehicles – its second best month ever.
For June 2020, the company sold 3,740 EVs for the month, up 179% year over year.
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