- NYSE:NIO fell 2.98% on Monday as broader markets dropped.
- Recent announcements from Tesla may show that NIO is gaining momentum in the electric vehicle sector.
- A further JP Morgan upgrade shows how much optimism Wall Street has.
NYSE:NIO has seen its week-long spike come to an end as shares fell during Monday’s trading session amidst a broader market dip caused by uncertainty surrounding the delivery date of the next stimulus package in the United States. The Chinese automaker’s stock fell 2.98% on Monday to close the day at $27.63, as the electric vehicle sector was trimmed all around. As one of the best performing sectors all year, it is only natural that investors would look to these hyper-growth stocks to re-allocate some of their investments.
Industry leader Tesla (NASDAQ:TSLA), which also fell 8.84% on Monday, has made some recent announcements that could be a bullish sign for the future of NIO. First, Tesla has recently lowered the price of its Model 3 and Model S vehicles in China, a sign that demand could be waning as Government subsidies guide residents to purchase domestic brands like NIO and XPeng (NYSE:XPEV). Tesla has also shifted a higher percentage of deliveries to Europe, a continent that NIO has also announced its intentions of moving its focus to. Is Tesla worried about NIO? That could be a stretch, but with CEO William Li estimating that the company can manufacture 150,000 vehicles per year by the end of 2021, NIO certainly has made its way onto Tesla and investor radars.
NIO stock news
Another recent upgrade from JP Morgan analyst Nick Lai, was the catalyst for the further rise in NIO’s stock at the end of last week. Lai joins a growing number of analysts who are bullish on NIO and that is reflected in his increase in the price target from $14 to $40. Lai anticipates a positive third-quarter earnings report as well as parity in production costs between electric vehicles and non-electric vehicles by 2025.