Chinese electric vehicle maker Nio (NYSE:NIO) is seriously revving up ahead of its hotly anticipated shareholder event. But beyond the simple anticipation, there are a series of catalysts supporting NIO stock here. So what do you need to know? And why are Nio shares up more than 6% today?
To start, investors should know that Nio is planning a massive shareholder event on Saturday, Jan. 9. There, the company will provide updates on its business and give insight into exciting new projects. Consider it the equivalent to an Apple (NASDAQ:AAPL) iPhone launch or the Tesla (NASDAQ:TSLA) Battery Day from the fall. This time though, it is a window into a red-hot EV company that is promising to challenge Tesla and rapidly expand within China.
So what exactly is so special about this event? The simple answer is that many investors dearly love NIO stock. Over the last year the company has radically changed its financial standing, delivered a record number of vehicles and unveiled a 100 kilowatt hour battery. In January 2021, Nio could take even more steps toward a promising future.
As investors start bidding up shares, there are several things on their wish list for Saturday. Rumors of a new sedan — which Nio executives alluded to on a quarterly earnings call — are raising the stakes. Plus, bulls are hoping for a 150 kilowatt hour battery, international expansion plans, entry-level vehicles with cheaper lithium-ion batteries and autonomous vehicle tech.
Importantly, there is reason to believe that these hopes will come to fruition. Chinese media outlets have reported on a deal Nio struck for cheaper batteries. Job postings seem to indicate that Nio is finally breaking into Europe. And talk during the the quarterly earnings call points to self-driving cars.
Why NIO Stock Is on the Move
Clearly, there is a lot of excitement behind NIO stock, and more specifically, behind the upcoming Nio Day. In many ways, Nio is the perfect poster child for the rush of enthusiasm behind electric car stocks. The company turned itself around, rising from $3.70 a share in January 2020 to over $50 today.
That price trajectory alone explains the move today in NIO stock. Although shares have already soared, analysts see more upside ahead. InvestorPlace analyst Luke Lango, a fan of the company, has said that international expansion could take shares to $150. That means if speculation proves true on Saturday, we could see a quite-justified rally in shares. And Lango is not alone.
According to social media users, a handful of analysts jumped on board the Nio bandwagon yesterday with higher 12-month price targets. According to an image shared on Twitter, Credit Suisse analyst Bin Wang raised his price target to $65. Similarly, Daiwa Securities analyst Kelvin Lau raised his price target to $70. Both analysts have buy ratings on the stock.
Keep a close eye on NIO stock. Although there is the chance for a pullback immediately after Nio Day, similar to what we have seen after events from Apple and Tesla, it seems that everything is working right for the EV maker. Now the company just needs to keep living up to the hype.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
