Six weeks ago (May 15) NIO delivered its 200,000th vehicle and ended the month with cumulative deliveries of 204,936 vehicles — after delivering 7,024 units in May 2022. After seeing how fast production ramped in Q4, and NIO's projections for Q1, the analyst feels confident in predicting that deliveries will more than double this year, to 90,500 units or better. NIO's stock has tumbled 30.8% over the past three months through Thursday, while shares of China-based rivals XPeng Inc. (XPEV) have dropped 18.5% and Li Auto Inc. (LI) have rallied 11.2%.
But battery issues and the well-flagged semiconductor problems were mentioned by CEO William Li on the analyst call. Nio Inc.’s automobiles are built around three key platforms that include a sports car, a line of SUV/crossovers, and a sedan. The EP-9 sports car is the firm's first model and has been in production since 2016.
Investment firm JP Morgan believes that Apple's current problems with the Chinese government will spread, and that there are no "material upgrades" to tempt buyers in the iPhone 15 range. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any https://bigbostrade.com/ errors, omissions or any losses, injuries or damages arising from this information and its display or use. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
JPMorgan strategists say US stock valuations at risk from high interest rates
Morgan Global Liquidity (JPM GL) after its 2018 initial public offering. JPM GL’s USD liquidity solution satisfied NIO’s low risk tolerance,need for timely access to dollars and, importantly, its desire for security. After the myriad issues encountered last year, namely the zero-Covid policies’ impact on production alongside supply chain snags, investors will be hoping the uptick is a harbinger of things to come and not merely a one-off event. The firm remains positive on NIO believing that the company’s vehicle margin will “hit a trough of ~15.5% in Q but rebound strongly to ~18-19%” in the second half of 2022. Regarding the overall new energy vehicle (NEV) market, Lai said he remains “constructive” this year, but he believes the growth rate will decelerate sharply, to 23% in 2023 from 80% in 2022. $46 a share -- isn't that just a couple bucks more than the $44 NIO stock costs today?
The last rating for NIO was filed on September 6, 2023 so you should expect the next rating to be made available sometime around September 6, 2024. NIO Inc. is a pioneer in China’s premium electric vehicle market. The company designs, jointly manufactures and sells smart and connected premium electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial esports stocks intelligence. In August 2015, he hiked his price target for the shares by 66 percent based on his view that Tesla would launch an app-based on-demand mobility service to compete with the likes of Uber Technologies Inc. and Lyft Inc. Eight years later, Tesla has yet to introduce such a service, and features the company markets as Autopilot and Full Self-Driving require constant driver supervision.
The average month of September is graphed as a histogram below. Twenty of the days in the month have a negative expected return. JP Morgan also attributes its decision to cut the price target to how "iPhone volume expectations are low given multiple headwinds."
- In previous years, it says there has been higher investor expectation ahead of an iPhone launch, but that isn't present this time.
- NIO’s cash investment management approach is a good reference point for other fast-growing, homegrown companies in China facing evolving cash needs as they transition through different stages of their business lifecycle.
- Like many start-ups, NIO has faced cash investment challenges, evolving as it has moved through different phases of its business life cycle.
- Battery swapping opens the door not only to long-term customer relationships via battery-swapping plans, otherwise known as BaaS or battery-as-a-service but also to the ability to sell cars without a battery which greatly reduces the price point.
- If you require advice in relation to any financial matter you should consult an appropriate professional.
- The author makes no representations as to the accuracy, completeness, or suitability of this information.
The company is scheduled to release its next quarterly earnings announcement on Thursday, November 9th 2023. NIO's stock was trading at $9.75 at the beginning of the year. Since then, NIO stock has increased by 8.5% and is now trading at $10.58. By investing in high quality institutional money market solutions in their overall portfolios, they can achieve diversification, especially important when China’s new regulations are phasing out principle-guaranteed products.
Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer. Ready cash and secure reserves remain mission critical to NIO. To achieve these at the same time as new AMP rules were about to go into effect required proactivity. By using the combination, NIO maximised its cash investment return opportunities. To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
NIO is also offering "various types of content (e.g. entertainment)" and also services such as battery replacement, both of which may provide incremental revenue above and beyond the revenue from selling the cars in the first place. In comparison, shares of U.S.-based rival Tesla Inc. (TSLA), which recorded $18.15 billion in revenue from China in 2022, or 22.3% of total revenue, have slipped 2.0% over the past three months. The iShares MSCI China exchange-traded fund (MSCI) has gained 5.6% the past three months and the S&P 500 index has slipped 2.2%. The electric-vehicle maker started production of the supercomputer used to train artificial intelligence (AI) models for self-driving cars in July and plans to spend more than $1 billion on Dojo through next year. The team includes Adam Jonas, one of the highest-profile Tesla analysts. The new price target is the most-bullish on Wall Street, according to FactSet data.
The company issued revenue guidance of $2.61 billion-$2.69 billion. NIO’s cash investment management approach is a good reference point for other fast-growing, homegrown companies in China facing evolving cash needs as they transition through different stages of their business lifecycle. “Bringing our history, global scope and experience, we also share our industry know-how and partnership with NIO’s treasury team to develop its expertise,” says J.P. Achieving prudent yield enhancement while meeting liquidity and security requirements are global best practices, particularly relevant in China in 2021 as corporations must revisit their cash investment approaches before the new AMP rules come into effect. The Chinese electric-vehicle maker's stock sold off by 13% Tuesday, one day after NIO delivered a tiny sales "beat" -- but lost twice as much money as analysts had bargained for. And yes, there's a lot of corporate babble-speak in that statement, but roughly translated, what Lai is saying here is that he thinks NIO has the ability to not just sell cars to consumers, and collect money from making those sales.
Olivia Rodrigo's latest music video 'get him back!' was shot on iPhone 15 Pro
Like many start-ups, NIO has faced cash investment challenges, evolving as it has moved through different phases of its business life cycle. It has experienced rapid growth, combined with a torrent of investment capital, which created vast cash management challenges. NIO has a high cash burn rate due to the high cost of research and development.
The decennial pattern was developed by Edgar Laurence Smith at Ameritrust Bank in the 1930s. He found that the last digit in a year had an effect on the stock market. Years ending in zero had the worst returns and years ending in five had the best, etc. Here are the numbers for both conditions applied to the DJIA.
NIO Consensus Rating and Price Target (
Given NIO’s current stage in the business life cycle, it was looking for prudent, market-competitive return opportunities for some of its domestically generated cash. Yet meeting its newly broadened appetite for returns proved challenging at a time of ultra-low rates. Choosing JPM GL also meant 24/7 cross-market operational efficiency. NIO’s treasurers in China can quickly manage settlement of capital raised regardless of time zones or business hours. The financial institution also helped NIO’s treasury team enhance its governance, ensuring its liquidity management fulfilled both its own business objectives and US share listing requirements.
- In comparison, shares of U.S.-based rival Tesla Inc. (TSLA), which recorded $18.15 billion in revenue from China in 2022, or 22.3% of total revenue, have slipped 2.0% over the past three months.
- He found that the last digit in a year had an effect on the stock market.
- That compares with its current market value of about $789 billion, after the stock closed at $248.5 on Friday.
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- In fact, the number mentioned by Grizzly Research was achieved 14 months ago (April 2021) and the EV maker should have around 215,000 – 217,500 vehicles on the road, 115,000 more than the number indicated by the author of the report.
The relationship exists because the dollar is traditionally inversely correlated to oil prices — meaning that when the greenback's value rises, oil prices fall, and vice versa. The correlation exists because the international oil trade is typically denominated in the greenback, so demand for the commodity falls when the value of the dollar gains. Amid a broad discourse about the waning influence of the US dollar, analysts at one bank see one commodity market starting to shy away from the currency. The election year and the decennial pattern can also affect the results.
NIO Technical analysis
The EC-6 and ES6, ES7, and ES8 are all SUV crossovers with seating from 5 to 7 people. Upcoming models are the ES3 SUV crossover and the EF9 minivan. Models in development include the ET full-size sedan and the Eve station wagon, a full autonomous compact vehicle.
The chart to the right plots
the historical put/call ratio for this instrument. Note that cost basis is calculated and stored in thousands, so small quarterly changes in shares frequently
result in a cost basis of zero. One share of NIO stock can currently be purchased for approximately $10.58.
Overall MarketRank™
The average twelve-month price prediction for NIO is $12.68 with a high price target of $19.20 and a low price target of $7.50. According to JPMorgan analyst Nick Lai, NIO's Q4 was "solid," and even a "meaningful beat" if you back out the "unrealized foreign exchange losses" that were the primary reason NIO lost twice as much money as analysts had anticipated. In Q4, NIO reported $1.02 billion in quarterly sales, inching past analysts' predicted $1.01 billion. On the bottom line, however, the 17,353 EVs NIO delivered in the fourth quarter of 2020 cost the company a GAAP net loss of $0.16 per share, and an "adjusted" loss of $0.14 per share -- twice the $0.07 pro forma loss Wall Street had predicted.
Jpmorgan Chase & Co
has a history of taking positions in derivatives of the underlying security (NIO)
in the form of stock options. The firm currently holds call options representing 0 of underlying shares
valued at $0 USD
and put options representing 0 of underlying shares
valued at $0 USD
. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
NIO Stock Price
29 employees have rated NIO Chief Executive Officer William Li on Glassdoor.com. William Li has an approval rating of 89% among the company's employees. Sign-up to receive the latest news and ratings for NIO and its competitors with MarketBeat's FREE daily newsletter.