Why Nio Stock Jumped Today

Nio factual made a lumber to staunch a supply chain partner.

Howard Smith

Key Elements

  • A brand recent analyst mark purpose implies an almost 90% save is anticipated for the stock.

What happened

Many shares in the electrical automobile (EV) sector were in correction mode over the final month. The shares of Chinese EV maker Nio (NYSE:NIO) were no exception, shedding bigger than 12% all around the last four weeks. Nonetheless Nio stock has reversed path currently, rising as powerful as 5% in early buying and selling. Nio shares remained up 3.3% as of 11 a.m. ET.

So what

Two items of recordsdata helped investors jump into Nio stock currently. Company founder and CEO William Li attended a ceremony the day earlier than currently marking a brand recent strategic partnership with Chinese steelmaker Baoshan Iron & Steel (Baosteel), experiences China EV alternate follower CnEVPost. Moreover, HSBC analyst Yuqian Ding factual reiterated a blueprint shut ranking on Nio stock, and raised the agency’s mark purpose in a notify shared by TheFly.com.  

A blue Nio ET7 sedan driving on coastal road.

Nio will initiate confirming orders for its ET7 luxurious sedan on Jan. 20, 2022. Image supply: Nio.

Now what

HSBC’s recent $54 mark purpose for Nio would characterize an 87% save over Monday’s closing portion mark. Ding pointed to the persisted progress in electrical automobile deliveries after Nio reported a 109.1% 365 days-over-365 days jump for the corpulent 365 days 2021. The analyst furthermore famed that Nio shall be adding two recent sedan units this 365 days, with plans for no no longer up to 1 extra recent product in 2022. 

Nio talked about this can initiate confirming orders for its ET7 luxurious sedan somewhat bigger than per week from now, with preliminary deliveries scheduled for the discontinue of March. It furthermore plans to initiate shipments of the smaller ET5 sedan in September 2022. The recent partnership with Baosteel appears to be a capability for Nio to be obvious supply a truly mighty to make stronger its progress plans. 

Li talked about in a observation, “Nio needs a world partner like Baosteel to work hand-in-hand on products, supply chain, technology innovation, recent discipline cloth functions and nil-carbon pathways.” Investors currently appear to mediate this would maybe even be precious over the long term for Nio to contain this form of partnership. 

This article represents the concept of the creator, who would perchance maybe also disagree with the “loyal” recommendation situation of a Motley Fool premium advisory carrier. We’re motley! Questioning an investing thesis — even indubitably one of our contain — helps us all mediate critically about investing and save decisions that assist us develop into smarter, happier, and richer.

Howard Smith owns NIO Inc. The Motley Fool owns and recommends NIO Inc. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy.”>

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