What Is Happening With Nio Stock This Week? 

NIO stock - What Is Happening With Nio Stock This Week? 

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Electric vehicle (EV) maker Nio (NYSE:NIO) has been dropping this week. A popular name in the EV sector, NIO stock is down 9%. There are two big pieces of news about the company that have led to the dip. The stock is currently trading for $20 and has been in the range of $14 to $23 over the past month. 

As per Financial Times, Nio is currently in discussion with several automakers with regard to licensing their battery swapping technology, which is the core of the company’s strategy. Nio is the only EV maker that has successfully generated revenue through battery swapping and has made it a significant part of its business. The management is considering this move as it will help attract the petrol driving motorists in Europe. It is in talks with Chinese and international auto groups to open a network of charging stations, which will increase from 800 to 5,000 globally by the middle of this decade. The news could be a catalyst for the company and could lead to higher sales and revenue. 

On the other hand, 36Kr has reported that a top executive for Nio’s autonomous driving unit, Zhang Jiangyong will be leaving the company. He helped build the autonomous driving program for the company and managed the autopilot system team, which consisted of about 400 staffers. The good news is that he is not planning to join a competitor.

UBS analyst Gong has a Buy rating for the stock with a price target of $32. The analyst feels that the sales volume growth of the company has slowed with “aging products,” but the new model launches could push sales in the coming months.

My InvestorPlace colleague Faizan Farooque thinks that the selloff is a solid buying opportunity. I am bullish on the EV maker and believe that its potential is underestimated. NIO stock is a solid long-term player and it can become huge in the coming years.

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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