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Nio opens largest service center in China – what it means for the stock

Nio opens largest service center in China - what it means for the stock
Dino Kurbegovic

Nio (NYSE: NIO), one of China’s electric vehicle (EV) trailblazers, continues to expand its business across China, possibly setting itself up for international success.

The firm opened its largest service center in China, namely, in Shanghai’s Songjiang district, as reported by CnEVPost on August 18.

The center represents Nio’s 10th in the city, covering a broad area of 12,000 square meters, with 70 service bays and 129 standard parking spaces, offering maintenance, metalwork, painting, vehicle diagnostics, and a car wash. Alongside these, the center will also have a showroom offering test drives and rides.

Furthermore, the firm also recently announced its delivery numbers showing that year-on-year (YoY) deliveries rose by 27%. Additionally, their proposition is rounded out by offering 1,064 battery swap stations in China, with 274 located along highways. Along with 1,825 charging stations in China. 

It appears the service center could increase the revenue the firm will bring, which could in turn boost the share price.

NIO chart and analysis 

In the last month, NIO has been trading in a wide range between $18.59 and $21.97, while the long-term trend is still negative despite the recently improved performance of the shares. 

Meanwhile, technical analysis shows the support line at $19.81 and a resistance zone between $20.11 and $20.61. 

NIO 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

TipRanks analysts have a ‘strong buy’ rating consensus, seeing the average price in the next 12 months reaching $33.04, 64.54% higher than the current trading price of $20.08; notably, no analysts have a hold or a sell position.

Wall Street analysts’ price targets for NIO. Source: TipRanks  

Finally, Nio seems to be making the right moves to make its business sustainable and competitive, not just in China but internationally.  

Meanwhile, the service center along with offering upselling opportunities will offer interested buyers a test drive or have one of the Nio center employees drive them around and show the characteristics of their vehicles. 

In essence, the center could be a central hub where Nio enthusiasts gather, have their cars serviced, and get even more drawn into the Nio ecosystem. 

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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