The stock market has not been kind to electric vehicle (EV) companies recently. Last year saw a huge surge in demand and a surge in shares of many companies, with Lucid (NASDAQ: LCID) perhaps the most recognized due to the dubious honor of being kicked off the Nasdaq 100 index.
This year, so far, has proven to be just as bad as Tesla (NASDAQ: TSLA), the leading EV stock that was holding its ground in 2023, entered a downtrend.
Looking at the overall trend, it’s no surprise that Chinese electric vehicle company Nio (NYSE: NIO) hasn’t fared any better and is down on almost every commonly used time frame.
Over the past 52 weeks, Nio fell by 52,26%. Over the past week, it’s down 4.83%, and year-to-date (YTD), the company is 32.19% in the red.
NIO 52-week price chart. Source: Finbold
The last trading day – Thursday, February 1 – however, bucked the trend as the company closed up 1.60% at $5.71, and, judging by the experts’ consensus, this latest movement is the new trend as Nio is exceptionally cheap compared to Is. Where will it go in the coming months?
Analysts see only one way for Nio stock – up
Indeed, despite the broader slowdown in the EV market, including Lucid implementing a massive $10,000 cashback program and Tesla offering multiple rebates on its models – the latest of which came on the first day of February – Wall Street analysts are very bullish on Nio. .
In fact, Nio is considered a “Moderate Buy” overall, with 6 out of 10 experts analyzed by TipRanks rating it a “Buy” and the other 4 rating it as a “Hold.”
Analysts have proven to be even more optimistic when it comes to Nio’s price targets. For example, the lowest forecast for the company estimates an increase of 40.11% to $8 per share.
The average target, similarly, is surprisingly high as the EV maker’s stock will rise 90.19% over the coming 12 months, meaning the stock will reach as high as $10.86 as early as February 2025 – even January. Even above the 2023 value.
Finally, according to the high estimate Nio price will not see this much growth since mid-2022, as it projects a rise of 227.50% to $18.70.
NIO Analyst Ratings. Source: TipRanks
Strong forecast, weak technical
In sharp contrast to analyst bullishness and in line with the overall trend for Nio, the technical analysis (TA) paints a much more bearish picture for the EV maker.
NIO Technology. Source: Trading View
Based on its performance over the last 30 days, technicals from TradingView indicate that savvy investors will probably want to stay away from Nio shares as overall it is ranked as a “Sell.”
While oscillators are, on average, neutral on the stock, the moving averages conclusively indicate that it should be considered a “Strong Sell.”
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Source: finbold.com
