Nio Stock Won’t Be This Inexpensive for Very Much Longer

Electric vehicle manufacturer Nio (NYSE:NIO) has always been in the news for good reasons. The company has consistently delivered impressive delivery numbers and reported stellar revenue quarter after quarter. I love NIO stock and have recommended a buy with every dip.

A Nio (NIO) store at night in Shanghai, China.
Source: Robert Way / Shutterstock.com

The stock is inching closer to $40, and you should make your move before it becomes too expensive. 

NIO hit $53 in June but has been declining since then. However, the past few weeks have seen the stock slowly move upwards. It is trading close to $39 today.

The company recently confirmed that Nio Day 2021 will be held on Dec. 18. It is the fifth Nio day and investors are expecting the company to make some big announcements at the events.

At Nio Day 2020, the company announced ET7, its first sedan, and Power Swap Station 2. Investors are looking forward to more details about the ET7 sedan deliveries.

Further, the company may announce another sedan, ET5 this year, as reported by AutoEvolution.  It has already declared its intention to enter the mass market industry under a different brand name. We might get more updates on it on Nio Day. There is a lot of speculation that Nio will launch the much-awaited Sportscar, EF9. 

Further, the company may provide additional details about the Norway launch and its plans for international expansion.

Investors and auto enthusiasts have a lot of hopes and expectations for Nio Day, and the event will certainly take the stock to new highs at the end of the year. Nio day 2020 saw NIO stock go beyond $60. 

A Closer Look at NIO Stock

Nio has increased its production capacity at the Hefei factory which is jointly run with Chinese automaker JAC. This upgrade has boosted the capacity of the company by 20% annually.

The new production capacity of the plant is 120,000. It will double the capacity in the first half of next year which will take it to 240,000. 

It shows the strong market potential and capability of the company. Nio has already delivered more than 10,000 cars in September and it anticipates an increase in demand in the coming months.

The timely expansion of production capacity will allow the manufacturer to meet the demand and ultimately report high revenue and sales numbers. If the company launches a new model on Nio day, the increased production capacity will help meet the demand. 

I am not the only one bullish on NIO stock. There are other Wall Street analysts who consider the stock a great buy with high growth potential.

Citic Securities analyst Jiancong Yuan has a buy rating on the stock with a price target of $45. BofA securities analyst Ming Hsun Lee has a buy rating for the stock with an average price target of $62. The analyst is impressed with the strong delivery momentum of the company. 

Further, Goldman Sachs analyst Fei Fang has upgraded the stock to Buy with a price target of $66. The analyst accounted for the sales of ET7 and believes that it will drive growth in 2022. 

The Bottom Line

The EV industry is showing no signs of slowing down and Nio has an impressive growth story. The company’s delivery numbers are strong and continue to impress investors.

The positive anticipation about Nio day and third-quarter results will take NIO stock to new highs. I believe the stock will continue the upward momentum in the coming months.

The international expansions plans and introduction of new models will drive interest and investment in the company. 

Nio has massive growth potential and it could hit the $50s very soon. Buy the stock before it becomes too expensive. Any dip in NIO stock is a chance to load up. 

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.


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