Nio (NYSE:NIO) stock is still one of the hottest electric vehicle plays.
The last time I offered my opinion on the stock, I said I’d like to see NIO back to $67.50 long-term as company deliveries explode higher.
That was on July 15 as NIO stock traded around $43. It hasn’t moved a lot since then (it will open this morning a little north of $44), but I still strongly believe NIO stock could run back to $67.50 with patience.
With growing demand and a global pledge to cut emissions, electric vehicle stocks, like Nio could dominate.
Helping, President Biden wants electric vehicles to make up 50% of all new vehicle sales by 2030. In addition, the infrastructure bill proposal includes billions of dollars for EV charging stations and buses as well as for factories to expand their capacity.
With far more growth ahead, EV stocks like NIO could easily accelerate to $67.50 and beyond.
NIO Sales Growth Continues to Impress
NIO delivered 21,896 vehicles in the second quarter. That is a 111.9% year-over-year increase. June deliveries soared 116.1% to 8,083 year-over-year, as cumulative deliveries jumped to 117,597.
Even more impressive, the company delivered another 7,931 vehicles in July – a year-over-year increase of 124.5%. Cumulative deliveries as of July are now 125,528.
With demand only gaining traction, delivery numbers may only accelerate from here. It’s another reason I’d use any weakness in NIO stock as a buying opportunity.
It also doesn’t hurt that analysts at Citi are bullish on the stock. In early June, the firm upgraded NIO stock to a buy rating with a price target of $58.30.
In fact, according to CNBC contributor, Jesse Pound, Citi analyst Jeff Chung upgraded the stock, noting the “company should see demand gain steam in the coming months, making that weakness a buying opportunity.”
Demand for Electric Vehicles Isn’t Likely to Slow
Again, governments all over the world want electric vehicles on the roads. All after pledging to significantly reduce emissions.
Biden wants EVs to make up 50% of all vehicle sales over the next nine years. General Motors (NYSE:GM) wants to be fully electric by 2035. Ford (NYSE:F) wants 40% of its sales to come from electric vehicles.
Over in Europe, demand is skyrocketing. According to the American Journal of Transportation, European demand has more than doubled over the last year.
That news out of Europe is substantial for Nio, considering the company just shipped its NIO ES8 to Norway.
In short, the EV boom is just getting underway, and Nio is one of the top stocks to consider.
The Bottom Line on NIO Stock
Long-term, there’s a lot to like about NIO.
With growing demand and a global pledge to cut emissions, electric vehicle stocks like Nio will dominate the auto market. Governments all around the world want millions of EVs to hit the roads to help battle climate issues.
In addition, Nio deliveries continue to impress.
The company delivered another 7,931 vehicles – a year-over-year increase of 124.5% in July. With those numbers likely to improve moving forward, I see no reason this stock can’t push back to $67.50 a share.
We’ll learn more about Nio’s growth when the company releases earnings today. If company numbers are as impressive as I believe they could be, NIO investors could have a great day.
On the date of publication, Ian Cooper 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.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.