It is no secret that Nio (NYSE:NIO) has stumbled in 2021 after setting a series of all-time highs. However, the Chinese electric vehicle maker is looking to change that, as NIO stock kicks off a gain-filled week. So what is causing the latest rally? And what else do you need to know?
To start, investors likely know that Nio is not alone in this struggle. Electric vehicle stocks in general, and especially Chinese EV stocks, have faced a series of downside catalysts. Trade tensions. Changing market sentiment in growth stocks. Covid-19 reopening. Chip shortages. Growing competition and valuation concerns. Even some of the staunchest bulls were backing away from their bets on NIO stock as Wall Street changed its tune.
But this week, things are looking up. Nio kicked everything off by announcing its upcoming Nio Power Day event on July 9. There, investors are hoping for a stock-juicing update around its battery technology. That is because this battery tech is in large part responsible for its share price gains. Advancements like its latest generation of battery-swapping stations and its latest 150 kWh batteries have brought more investors on board.
With this upcoming event and a few other promising catalysts, Wall Street is ready to see Nio rev its engines once again.
Why NIO Stock Is Gaining Again Today
So beyond the July 9 event, what has NIO stock gaining today?
It seems that just as retail investors are getting excited again about the EV maker, Wall Street analysts are too. Citibank analyst Jeff Chung just raised his price target on NIO stock to $72 while maintaining a “buy” rating. Ahead of the next earnings report, he is calling for “robust shipment volume” and growth in the third and fourth quarters. Plus, as John Rosevear wrote for The Motley Fool, Chung anticipates Nio delivering a total of 93,000 vehicles in 2021. That is higher than his previous target of 90,000.
So what is the bottom line? Nio still faces a competitive battlefield in the electric vehicle world, and supply-demand imbalances have not been resolved. However, Chung and a few other analysts are betting this investor favorite can pull through and continue to wow fans in 2021.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.