Nio Stock Is Poised For A Solid 2022

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US-listed Chinese premium electric vehicle manufacturer neo stock (NYSE:NIO) had a mixed 2021, with its stock falling nearly 40% over the previous year. While the operating performance of the Nio has been pretty solid, deliveries for 2021 grew 109% to 91,429 units, the company being overshadowed by rival Xpeng Which delivered 98,000 vehicles, a growth of 263% last year. In addition, investors are also concerned about regulatory crackdown on technology companies in China and more scrutiny of Chinese companies listed in the US, which is hurting Nio stock.

That being said, there are a number of factors that could help Nio stock outperform this year. Firstly, the valuation of the Nio looks quite attractive. The stock trades at less than 5x projected 2022 revenue, well below the likes of Tesla which trades at about 15x projected revenue, and Xpeng which trades at about 7x. Nio is likely to have a strong 75% increase over consensus estimates, which is slightly below Xpeng but well ahead of Tesla, which means the lower multiplier isn’t really warranted. The long-term outlook is also looking good. Nio is expected to expand its model lineup this year with the launch of the ET7 full-size sedan, the ET5 compact sedan, and there is a possibility that we may see more new vehicles unveiled this year. Nio is likely to grow further with its international expansion. Last year, the company entered Norway and plans to enter five more European countries in 2022. NIO also expects to double the production capacity at its plant in Hefei, China, to 240,000 vehicles by the middle of 2022, and that could also help with volume growth in the long term. Nio’s margins are also expected to pick up further as economies of scale improve. Check out our analysis Nio, Xpeng and Li Auto: How Do Chinese EV Stocks Compare? For more information on how NIO stock stacks up compared to its peers, read on.

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Below you’ll find our previous coverage of Nio stock where you can track our outlook over time.

[12/22/2021] Is Nio stock ready to recover from the recent selloff?

Chinese premium electric vehicle manufacturer listed in the US neo stock (NYSE:NIO) is down nearly 7% over the past week, significantly underperforming the S&P 500, which remained nearly flat over the same period. So what’s driving the selloff lately? EV stocks, in general, were hit by the halt of talks related to the Build Back Better Act, a law that included buy-tax credits. The stock has for some time been weighed apart by widespread selling pressure in Chinese American depository receipts, less than six months after going public, amid regulatory pressures, said ride-hailing firm Didi Chuxing. That said, there have been some positive developments for Nio over the past week as well. The company unveiled a new mid-size luxury sedan called the ET5 at its Nio Day event held last weekend. The vehicle, which will start at around $40,000, is expected to go on sale sometime in 2022. Nio also said that its new ET7 sedan will start shipping in March 2022.

So is the stock likely to decline further in the near future or is the potential for gains more visible? Based on our machine learning analysis of stock price trends over the past three years, NIO stock has a 59% chance of growth in the next month (twenty one trading days). View our analysis Neo Chance of Rise for more information.

Day five: NIO -6.6%, versus S&P 500 0.06%; underperforming market

(24% chance of occurrence)

  • neo stock 6.6% drop Compared to the broader market (S&P500), which remained broadly flat, in the five-day trading period ended 12/21/2021.
  • A change of -6.6% or more in five trading days has a 24% chance of occurrence, 199 out of 820 times over the past three years.

Day 10: NIO -8.9%, versus the S&P500 -1.1%; underperforming market

(24% chance of occurrence)

  • neo stock 8.9% drop Compared to the broader market (S&P500), it declined -1.1% in the last ten trading days (two weeks).
  • A change of -8.9% or more in ten trading days has a 24% chance of occurrence, which has happened 199 times out of 815 times over the past three years.

Twenty-one days: NIO -22%, versus the S&P 500 -1.2%; underperforming market

(13% chance of occurrence)

  • neo stock 22% drop In the past twenty-one trading days (one month), compared to the broader market (S&P500), it fell -1.2%.
  • A change of -22% or more in twenty one trading days has a 13% chance of occurrence, which has happened 103 times out of 804 times over the past three years.

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Below you’ll find our previous coverage of Nio stock where you can track our outlook over time.

[11/11/2021] What’s new in Nio Stock?

Chinese Premium EV Manufacturers NIO (NYSE:NIO) Its stock saw its stock fall nearly 5% over the past week (five trading days), outperforming the S&P 500, which remained nearly flat over the same period. Due to the ongoing supply chain challenges facing the auto industry and the company’s move to revamp its production lines for new models and boost capacity, deliveries for the current quarter are expected to be lighter than expected. The decline is due to the declination being directed by the NIO. While Nio delivered 3,667 vehicles in October, it expects Q4 deliveries to be between 23,500 and 25,500 cars, which is almost flat against Q3 2021 figures of 24,439.

So is the stock likely to decline further in the near future or is the potential for gains more visible? Based on our machine learning analysis of stock price trends over the past three years, NIO stock has a 61% chance of growth in the next month (twenty one trading days). View our analysis Neo Chance of Rise for more information.

The long-term outlook for Nio stock is also looking good. EV demand in China remains strong, with NIO indicating that it saw record bookings in October. The production issues Nio faces are also likely to be fleeting. The company indicated that it was looking to double the capacity of its plant in Hefei, China, to 240,000 vehicles per year, with additional changes expected to increase production to over 300,000 units. The company is also expanding its product line with its first sedan, the ET7, with deliveries expected to begin in the first quarter of next year, with two other models also in the pipeline for a 2022 launch. The economics of Nio’s business are also improving. The company’s net loss for Q3 was lower than expected, with vehicle gross margin at 18%, compared to 14.5% in Q3 2020. Nio stock also trades at a relatively reasonable 7x projected 2022 revenue, which isn’t much given the company’s position. High growth rate and expansion margin.

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[10/27/2021] Is Nio Stock Ready to Move After Expansion Plans, Tesla’s Big Order?

NIO (NYSE:NIO)The Chinese premium EV maker, which saw its stock rise nearly 10% over the past month (about 21 trading days), outperformed the S&P 500, which gained nearly 3% over the same period. While the stock faced some pressure in September due to concerns over the Evergrande debt crisis in China and rising bond yields, it has recently been driven by a few factors. First, Nio said it would double the capacity of its plant in Hefei, China, to 240,000 vehicles annually, from 120,000 units expected to be completed by the first half of 2022. In fact, the company says the plant could produce 300,000 cars annually with additional operational shifts. This should allow the company to meet EV demand, which remains strong. Second, there have been some positive developments for Nio’s EV peer Tesla, which posted solid Q3 earnings and won 100,000 vehicle orders from rental car major Hertz. This appears to have fueled the sentiment in the EV sector.

Now, is NIO stock headed to rise? Based on our machine learning analysis of stock price trends over the past three years, NIO stock has a 60% chance of growth in the next month (twenty one trading days). View our analysis Neo Chance of Rise for more information.

Day five: NIO 1.1%, versus the S&P 500 1.2%; underperforming market

(47% chance of occurrence)

  • neo stock rose 1.1% Compared to the broader market (S&P500), it gained 1.2% in the five-day trading period ending 10/26/2021.
  • A change of 1.1% or more in five trading days has a 47% chance of occurrence, which has happened 367 times out of 781 times in the past three years.

Day 10: NIO 14%, versus S&P500 5.2%; best performing market

(24% chance of occurrence)

  • neo stock rose 14% Compared to the broader market (S&P500), it gained 5.2% over the past ten trading days (two weeks).
  • A change of 14% or more in ten trading days has a 24% chance of occurrence, which has happened 189 times out of 776 times over the past three years.

Twenty One Days: NIO 10%, vs. S&P500 3%; best performing market

(41% chance of occurrence)

  • neo stock 10% rose Over the past twenty one trading days (one month), the broader market (S&P500) increased by 3%.
  • A change of 10% or more in twenty-one trading days has a 41% chance of occurrence, which has happened 310 times out of 765 times over the past three years.

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