Chinese EV maker Nio to spin off its battery production unit: sources

The equity’s Schaeffer’s Volatility Index (SVI) of 104% sits in the 19th percentile of its annual range, meaning options players are pricing in low volatility expectations right now. Plus, NIO’s Schaeffer’s Volatility Scorecard  (SVS) sits at 89 out of 100, indicating it has tended to exceed option trader’s volatility expectations over the past year — a boon for option buyers. Short interest rose 40.5% in the last two reporting periods, and the 83.70 million shares sold short make up 10.8% of the stock’s available float. In addition, Lai believes NIO’s target for 2023 deliveries of 240,000 to 250,000 is “ambitious,” and he’s modeling for deliveries to be much lower, around 190,000. NIO delivered 31,430 vehicles in 2020 in total, representing an increase of 111.4% year-over-year.

The consensus among Wall Street equities research analysts is that investors should « hold » NIO shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in NIO, but not buy additional shares or sell existing shares. 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. Overall, NIO boasts a cautiously optimistic Moderate Buy Street consensus with 6 buy ratings, 3 hold ratings and 1 sell rating.

  • Cumulative deliveries of NIO vehicles reached 431,582 as of November 30, 2023.
  • GameStop’s board of directors has approved a new investment policy, which lets the company invest in equity securities.
  • Yet another way that Nio sets itself apart from the average EV manufacturer is that it is focused on high-performance and smart vehicles.
  • The company reported a third-quarter loss of 4.56 billion yuan ($637.06 million) on Tuesday, a 10.8% increase from the same period a year ago amid a fierce EV price war.
  • NIO will release its 3Q22 financial results on November 10, but we can get a feel for the company’s performance by looking at the Q2 figures, the most recent reported.

Meanwhile the average analyst price target now suggests significant downside potential from current levels. Analysts arrive at stock ratings after doing extensive research, which includes going through public financial statements, talking to executives and customers of NIO, and listening in to earnings conference calls. Most analysts do this every three months, so you should get 4 ratings per company per firm each year. The last rating for NIO was filed on December 6, 2023 so you should expect the next rating to be made available sometime around December 6, 2024.

Nio’s stock bounces after J.P. Morgan analyst raises target, but expects ‘pullback’ near term

In the past 52 weeks alone, NIO stock has gained 2,138%, and according to J.P. However, the investment bank says German luxury car brands including Mercedes-Benz, BMW, and Audi may not have a best-selling model for some time. According to analysts, NIO’s stock has a predicted upside of 20.24% based on their 12-month stock forecasts. On near-term chip shortage and production shortfall, we believe the impact on 12-month forward earnings will be limited if supply tightness eases towards year end, as we anticipate.

  • Nio declined to comment beyond founder and CEO William Li’s comments on an earnings call on Tuesday that the automaker would continue to do in-house research and development on batteries but now planned to outsource all of the manufacturing.
  • In the meantime, Edison Yu, a Deutsche Bank analyst who follows the Chinese EV industry very closely said NIO could be negatively impacted during the second quarter, suggesting some downside to their existing 22,500 deliveries forecast.
  • The company announced last month that it would trim its workforce and defer long-term investments, efforts executives said could save up to 2 billion yuan in costs in 2024.
  • If achieved, his price target could offer a potential return of ~67%.
  • This suggests a possible upside of 67.3% from the stock’s current price.

In October, the head of Walmart’s U.S. business head has said the drugs were already causing customers to buy fewer groceries and cut back on those that are high in calories.

NIO stock falls after ‘tactical’ downgrade by J.P. Morgan on margin concerns

That’s because we believe the present value of its future stream of earnings is what determines the fair value for its stock. While media releases or rumors about a substantial change in a company’s business prospects usually make its stock ‘trending’ and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. 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 report is without merit and contains numerous errors, unsupported speculations and misleading conclusions and interpretations regarding information relating to the Company.

NIO Stock (NYSE:NIO), Analyst Ratings, Price Targets, Predictions

Despite the loss in share price, JPMorgan’s Nick Lai sees Nio as a good value. 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. Yet another way that Nio sets itself apart from the average EV manufacturer is that it is focused on high-performance and smart vehicles.

November Jobs Report Forecasts Call for More Moderate Growth In Hiring

It will help to increase consumers’ willingness to buy electric vehicles and further promote the popularity of new energy vehicles. Nio Inc. is engaged in the design, manufacture, and sale of electric vehicles in the People’s Republic of China, the US, and Europe. The company also manufactures electric motors, battery packs, and other components for the global EV market. Along with this, the company announced its intentions to enter the smartphone market in 2022 along with plans to outfit a production facility in Shenzen. True, even Lai doesn’t expect any of this to translate into actual net (or even operating) profits before 2023 at the earliest.

The drill-downs for October show that the company’s sedans are its most popular models, with the P7 smart sports sedan showing 2,104 deliveries and the P5 family sedan showing 1,665. 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. 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. 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.

NIO Inc. is a pioneer and a leading company in the premium smart electric vehicle market. Founded in November 2014, NIO’s mission is to shape a joyful lifestyle. NIO aims to build a community starting with smart electric vehicles to share joy and grow together with users.

NIO designs, develops, jointly manufactures and sells premium smart electric vehicles, driving innovations in next-generation technologies in autonomous driving, digital technologies, electric powertrains and batteries. An OEM books all the revenue when it sells the cars to customers while the AFC (whose underlying asset or collateral is the car) recognizes monthly mortgage fees paid by customers. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors’ interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The company saw its delivery numbers take off in the first part of 2022; in August of this year, XPeng delivered 9,578 cars, for a 33% year-over-year increase. For the first 8 months of the year, the company’s deliveries totaled 90,085, nearly doubling from the same period last year. We’ll start with Nio, an EV company founded in 2014 and currently offering six consumer-oriented EVs on the Chinese market. Nio started delivering vehicles in 2018, and its lineup now contains both compact- and mid-sized sedans and 5-seat SUVs. Over the past several years, Nio has reaped the benefits of Chinese government policies that promote the switch from combustion to electric vehicles. Benzinga tracks 120 analyst firms so investors can understand if analysts expect a stock to trade higher or lower.

This translates to an average of 40 users per day for each urban swapping station. NIO envisions reaching a break-even point when the daily usage hits users. This projection assumes a service revenue of Rmb30 per visit and an annual station cost of Rmb700,000. Prior to today’s pop, the security had been cooling off from its late-November peak after a period of notching record-highs on a near monthly basis. Now, shares have broken through overhead pressure at the $55 mark, with support from the ascending 50-day moving average. In the last nine months, NIO has gained a jaw-dropping 2,081.9%.

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