What Happened to the NIO Stock Price Today?
- Nio (NYSE:NIO) stock popped after the premium Chinese electric vehicle maker reported strong first-quarter numbers that topped expectations.
- Management also delivered an above-consensus second-quarter guide with respect to deliveries and revenues.
Why It Happened
- NIO stock has been under pressure because of a shortage in semiconductor chips that has stalled and delayed EV production.
- This report appears to be easing those concerns.
- Despite these supply chain issues, NIO reported monstrous first quarter numbers.
- Deliveries rose 423% year-over-year and 16% sequentially in Q1. Average sales prices rose 20% year-over-year and 4% sequentially. Revenues rose 482% year-over-year and 20% sequentially. Vehicle margins expanded 400 basis points. Gross margins expanded 230 basis points. Operating loss narrowed dramatically both year-over-year and quarter-over-quarter.
- Everything continues to trend in the right direction.
- Management expects the good times to keep rolling.
- Second quarter deliveries are guided to rise sequentially and grow more than 100% year-over-year. ASPs are guided to keep rising. Revenues are expected to grow more than 140% year-over-year in Q2.
Does It Matter?
- The long-term outlook on NIO stock is very favorable. The world is pivoting towards electric vehicles. China is at the forefront of this transition. NIO is the highest-quality and most technologically-advanced EV maker in China. Over the next several years, this company is going to produce and sell a lot of EVs, and generate tons of revenue and profits.
- The near-term outlook is less certain because of the semiconductor shortage constraining supply in 2021, which will dilute growth rates.
- But NIO appears to be trouncing the semiconductor crisis, and is growing at lightspeed irrespective of these challenges.
- With supply chain risks sidelined, NIO stock should be clear to head higher.
NIO Stock Price Forecast
- We believe NIO stock is significantly undervalued at current levels, on the assumption that NIO will one day be one of the largest EV makers in the world.
- Wall Street agrees with us.
- The consensus analyst price target of NIO stock is $60.
- We fully expect shares to make a run towards that level in 2021, as the supply chain issues ease over the next few months as semiconductor foundries come back online.
NIO stock is one of my favorite tech stocks to buy on the dip.
But it’s just one of my top electric vehicle stocks, which represent the cream-of-the-crop when it comes to disruptive technological innovation in EVs. These companies all feature second-to-none management teams and massive long-term potential.
Each of these next-generation mobility stocks could post Tesla-like returns, including a secret startup that’s spearheading the self-driving revolution, and a company I consider my EV “sleeper” stock of the decade.
To see my entire lineup of innovative next-generation EV stocks, click here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it.