Boring September for Nio Inc – ADR (NYSE: NIO) stock seems to be ending and with new catalysts ahead we might be looking at a green October. Have in mind that a month ago shares of NIO were selling at the same price level as they did on Thursday at closing bell, which is around $17.85. So, basically nothing special happened, and NIO survived the recent market selloff without big interruptions.
The number of cars in the Chinese market has quadrupled to 260 million in the past 10 years, quickly approaching the US’s 280 million. And few days ago China pledged to be carbon neutral by 2060, this goes for vehicles as well. The government’s next five-year plan, to be released soon, will be a key document, detailing the necessary economic, industrial and environmental changes that will be necessary.
EVs and vehicles powered by hydrogen fuel cells will play a huge part in this plan. And producers like Xpeng (XPEV) and Nio (NIO) are among the first movers in this niche and positioned to take the biggest part of the market. Tesla (TSLA) is now a leading EV seller, but this might change in the years to come.
Today, Friday September 25th Nio started delivery of their new model, EC6. it is announced on their official Weibo profile. First retail purchasers of EC6 are entitled to five worry-free services, including lifetime free power swap, lifetime free warranty, lifetime free car connectivity, lifetime free out-of-town power service, and lifetime free roadside rescue.
Recently, Nio drew attention to itself with very good figures for the second quarter. Another positive aspect was that car sales in China continued to recover.
The so-called battery change concept from Nio also speaks for the share. Instead of plugging in, Nio cars can be put in a kind of box. The entire battery is then replaced within just three minutes. Nio has currently set up 131 exchange stations in its home market of China around Beijing. The government in China also wants to promote this concept in the future.
Deutsche Bank and Credit Suisse recently renewed their buy recommendations for Nio shares. In comparison to Xpeng, Li Auto and WM Motor, Nio is at the top of the Chinese electric car manufacturers given its brand strength, according to Deutsche Bank analyst Edison Yu. His target price is $ 24. Credit Suisse goes one step further. Analyst Bin Wang sees potential for Nio shares up to $ 25.
And according to this Wall Street analyst:”A trader-hedge fund purchased 7000 NIO 10/16 $22 calls for 58 cents (above ask) and well above open interest of 4848
right at the closing bell.”- which shows the big dogs trust Nio and expect that NIO stock price might outperform other EV producers in the