Nio, Inc. the Chinese electric vehicle (EV) manufacturer that has been in operation since 2018 and has a wide range of EV models available for consumers in China, including SUVs, sedans, and coupes. Nio has differentiated itself from other EV makers by offering a battery-swapping service, which allows customers and drivers to quickly and inexpensively replace their battery packs.
In November 2022, Nio reported solid 3Q22 earnings, with revenues of $1.83 billion, representing a 24% quarter-over-quarter gain and a 38% year-over-year gain. The company also delivered 31,607 vehicles in the third quarter, a 29% increase year-over-year. However, more recently, in its delivery update for December 2022, Nio reported 15,815 deliveries, missing forecasts. This can be attributed to a number of supply chain difficulties the company has been facing such as difficulties in sourcing metal casting parts, silicon carbide, and setting up its EDS assembly, and delivery logistics.
Despite these challenges, the company did record a 34% y/y delivery increase for all of 2022, with 122,486 vehicles delivered. As of December 31, 2022, the company has delivered a cumulative total of 289,556 EVs. Analyst Edison Yu from Deutsche Bank believes that the company is facing some operational bottlenecks, but expects that they will be addressed by the end of the first quarter. He rates the shares as a Buy and his $21 price target implies a one-year upside gain of 95%.
Nio Inc. Stock Analysis
Nio Inc. Class A ADR is a publicly traded company and its stock can be analyzed to determine its potential performance in the future. Based on the stock forecasts from 10 analysts, the average target price for Nio Inc. Class A ADR is USD 22.85 over the next 12 months. This suggests that on average, analysts believe that the stock has the potential to increase in value by around 113% over the next year.
The average analyst rating for Nio Inc. Class A ADR is “Strong Buy“, which indicates that on average, analysts believe that the stock is undervalued and has the potential to generate returns for investors. However, it’s important to keep in mind that analyst ratings and price targets can change over time, and should not be the sole basis for making investment decisions.
Stock Target Advisor, a stock analysis tool, also provides their own analysis of Nio Inc. Class A ADR, which is “Slightly Bearish”. The analysis is based on 9 signals, 3 of them positive and 6 of them negative. This suggests that the tool sees potential downside risk in the stock, however, investors need to proceed with caution as there are potential positive signals in the stock as well.
Looking at Nio Inc. Class A ADR’s stock performance over time, its closing stock price was USD 10.76. Its stock price has changed by +10.36% over the past week, -14.81% over the past month, and -63.28% over the last year. This suggests that the stock has underperformed over the short and medium term, and has significantly decreased in value over the last year.
About Nio Inc.
Nio, Inc. is a Chinese electric vehicle (EV) manufacturer that designs, manufactures, and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and energy solutions. The company is headquartered in Shanghai, China and was founded in 2014. The company is often referred to as the “Tesla of China” due to similarities in product offerings and business models.
Nio designs, manufactures and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving and energy solutions. The company initially launched its first production vehicle, the ES8, in 2018, which is a 7-seater high-performance electric SUV. Subsequently, the company launched its other products including the ES6, a five-seater high-performance electric SUV, the EC6, a five-seater electric SUV Coupe and others.
In addition to its vehicles, Nio also offers a range of other services and products to its customers such as the Battery-as-a-Service (BaaS) solution, providing a more convenient and cost-effective mode for swapping out battery packs. The company’s business model also includes other services like Nio Power, which is an energy service solution, NIO Pilot an advanced driver assistance system(ADAS) and Nio House- a service hub for Nio’s users.
Nio’s financial performance was impacted by the ongoing COVID-19 pandemic and China’s economic downturn in 2020, the company has seen a robust recovery with growing demand for electric vehicles. The company went public on the New York Stock Exchange in 2018