One of the causes for the price drop of electric car maker Nio Inc was the adoption of pandemic limitations in China (NYSE: NIO). Investors were concerned that China’s limitations will worsen an already challenging supply chain position. However, some Wall Streeters are beginning to change their stance on Nio.
Bank of America analysts upgraded Nio’s stock to Buy on Monday, May 16th and boosted their price objective to $26. Nio has grown more appealing to experts as the price of its shares has decreased. The firm is predicted to expand sales in general, thus lower shares appear to be a favorable moment for some investors to go in.
Nio’s management recently announced that sales expectations for the company’s electric cars for 2022 and 2023 had been increased.
The news that the Chinese government’s newly imposed covid restrictions are starting to ease was another driver of growth at the start of this week. This indicates that manufacturing rates and supply of Nio electric vehicles will remain constant.
Nio has said that it plans to increase its footprint throughout Europe. The business has been shipping electric automobiles to Norway since the end of last year, and currently exports roughly 100 vehicles each month.
Nio also intends to debut in other European nations where electric vehicles are in great demand, such as Germany, France, and the United Kingdom. In Germany, 13.6 percent of newly registered automobiles were electric last year.
This accounts for 11.6 percent of all new automobile registrations in the United Kingdom. Only 2.6 percent of new automobiles registered in the United States last year were electric.
The shares of NIO rose 7.38 percent last week and fell -25.95 percent during the previous month. The shares of this firm dropped 38.84 percent in the previous quarter.
NIO stock has dropped -65.90 percent in the previous six months, with a full-year loss of -56.97 percent. This stock’s year-to-date (YTD) price performance is presently negative at -54.07 percent as of this writing.