The Chinese-based EV manufacturer paves the path for a clear future as Wall Street analyst goes bullish on the stock due to better-than-expected Q3 deliveries.
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Shares of the Electric Vehicle maker surged in the premarket today after the company announced a key production milestone. With the future of EV market looking crystal clear, NIO will become one of the leaders of the market.
Wall Street firm Morgan Stanley has raised its earnings forecasts and price target of the so-called Chinese Tesla. The company has increased its manufacturing power followed by a better-than-expected delivery rate in the previous quarter.
NIO is rallying today with strong momentum having the highest trading volume of 75 million, at the moment. The stock is trading at its all-time high price as it crossed the $30 mark earlier today.
As we write this at 11:23 A.M. EDT, NIO was trading at $30.12 soaring by 9.23%.
The company reported that it completed a 5,000th electric vehicle target for the month as it rolled out the production line at the Hefei manufacturing plant. The reports revolving around local Chinese media outlets highlighted that it is the first time in the firm’s history exceeding 5,000 units per month.
The company obtained this milestone right after Morgan Stanley updated its latest estimates for NIO. Morgan Stanley analyst, Tim Hsiao commented that NIO is achieving its target quite comprehensively. The pace of NIO’s progress in achieving its strategic and investment ambitions is tracking ahead of the expectations on all fronts.
Hsiao denoted NIO as “A strong EV leader in the making.”
Morgan Stanley believes that the Chinese EV market to evolve and face intensifying competition in 2021. Hsiao said:
“We look for Nio to reinforce its pole position through superior volume scale, good spectrum of model/market coverage, self-driving technologies and diversification into power solutions.”
It seems that the analyst anticipates NIO’s sales to record stronger volumes in the next two years. Hsiao has predicted stronger-than-expected demand and a strong backlog for Nio’s EC6 electric coupe SUV, a potential rival to the Model Y.
The analyst kept an overweight rating while raising his price target on NIO stock to $33 from $20.50.
Earlier, JP Morgan’s analyst, Nick Lai reported a new price target for NIO of $40 by June 2021. Nick expects the company to be driven by strong value-to-sales metrics and increasing demand in the EV market.
Another key point that makes NIO Limited (NIO) go bullish in the near future is the expected debut of a new sedan at NIO Day, which is anticipated to happen in December 2020 or January 2021.