With the S&P 500 and Nasdaq 100 both down more than 3% today, Nio (NYSE:NIO) has not been able to escape the carnage. Shares of the Chinese electric vehicle (EV) maker are down more than 12% today as investors grow increasingly nervous about the stock market. In fact, shares of NIO stock traded as low as $23.61 this morning, a 52-week low. However, over the weekend, Nio CEO William Li made an exciting announcement concerning European expansion plans.
In a call with Nio’s Norwegian team, Li announced that the ET5 model should arrive in Norway and additional overseas markets in the spring of 2023. Furthermore, Li added that the ET7 model would be available in Norway starting in the fourth quarter of this year. Additionally, Nio confirmed that it would introduce “its products and holistic service system to the Netherlands, Sweden and Denmark in 2022.”
The ET5 model was unveiled last December to much fanfare. Notably, the EV has a 60 miles per hour (mph) acceleration time of 4.3 seconds and a maximum range of 621 miles. Nio will start ET5 deliveries in China this September.
Indeed, Nio seems to be operating at full speed as it pursues global expansion. However, the stock has not responded well this year as it is down more than 25% year-to-date. So, where will Nio head next in 2022?
Nio Stock Price Predictions
- Citi has a price target of $87. Analyst Jeff Chung believes that the ET5 is priced very attractively against other EV competitors and that Nio has the opportunity to take market share. In addition, Chung notes that he sees great potential for Nio’s battery-as-a-service (BaaS) model as Nio expects to launch three new EVs this year.
- Morgan Stanley has a price target of $66. Analyst Tim Hsiao was impressed with Nio’s 2021 delivery figure of 91,429 units, which was up 109% year-over-year. Furthermore, the analyst added that additional rollouts of EVs and software updates could make Nio a contender against competitors like BMW and Mercedes-Benz.
- Macquirie has a price target of $37.70. Analyst Erica Chen believes Nio’s revenue will grow at a 52.1% compounded annual growth rate (CAGR) from 2021 to 2024. To arrive at her price target, Chen valued Nio at a 6.4x expected 2022 price-to-sales (P/S) multiple. However, Chen notes that downside risks include U.S. delisting concerns and “deteriorating battery and IC supply-chain management.”
On the date of publication, Eddie Pan did not hold (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.
