Electric vehicle stocks, like Nio (NIO) are accelerating.
All after reporting strong May deliveries.
For the month, NIO delivered 7,024 vehicles, including 5,317 premium smart electric SUVs, including 746 ES8s, 2,936 ES6s and 1,635 EC6s, and 1,707 ET7s, the Company’s flagship premium smart electric sedan. Also, as of May 31, 2022, cumulative deliveries reached 204,936 vehicles. Better, Nio vehicle production had been gradually recovering from the impact of COVID-19 outbreaks. NIO also plans to further ramp up the production capacity to a higher level by working closely with supply chain partners.
From a current price of $18.34, we’d like to see the NIO stock race back to $24, near-term.
Helping, the NIO stock was recently upgraded by Bank of America.
As noted by TheFly.com: BofA analyst Ming Hsun Lee upgraded Nio to Buy from Neutral with a price target of $26, up from $25. The upgrade is based on improving sales and better margins expected in the second half as well as an attractive valuation given the view that one-year return of down 60% has “likely priced in all negatives,” Lee tells investors.
Better, according to Digitimes, Nio has been recruiting in the U.S., which could lead to potential production and sales in America. China is implementing a new tax cut for new car purchases, which should benefit its entire auto sector. Also, Citigroup analyst Jeff Chung just said the Shanghai government would implement plans to boost the local economy.
All could provide a substantial boost for Chinese EV companies, like NIO.